Differences in Financial Performance of LQ45 Companies Listed on the Indonesian Stock Exchange during the Covid-19 Pandemic

Abstract

The global economy has been hit by a crisis, including the Covid-19 pandemic, which is no different than what Indonesia is experiencing. The pandemic has infected and affected the economic power of all countries. Performance during a pandemic should be studied very diligently. This phenomenon led to the first research on Indonesian companies. The purpose of this study is to determine the company’s performance before the pandemic and during his Covid-19 pandemic. For this, the researcher uses the “strong” firms in the Indonesian capital market – his LQ-45 firms. A total of 45 and 21 companies from various sectors were obtained using a targeted random sampling method. This data is collected through annual financial reporting for the 2018-2019 pre-pandemic and 2020-2021 during the Co-19 pandemic. Variables used to define company performance are current ratio (CR), gearing (DER), total assets turnover (earnings), return on equity (ROE), and earnings per share (EPS) is. Using these variables is suggested by researchers as representative of each company’s financial metrics. The research method used is another test of paired data. A data normality test was previously performed and found that the data used were not normally distributed. Therefore, for further analysis to determine whether there were differences before and during the Covid-19 pandemic, the Wilcoxon paired difference test was used in the analysis. We found no difference in firm performance between CR and DER variables before and during. However, when it comes to revenue, ROE and EPS, there are differences in company performance in the LQ-45. Apart from that, these results also show that business performance has declined during the Covid-19 pandemic.