PreprintArticleVersion 1Preserved in Portico This version is not peer-reviewed
Uncovering Financial Performance and Efficiency: A Glimpse into Indonesia's State-Owned Enterprises (SOEs) Construction Industry Debt and Financial Risk
Version 1
: Received: 12 June 2024 / Approved: 12 June 2024 / Online: 12 June 2024 (12:38:49 CEST)
How to cite:
Wibowo, F. A.; Satria, A.; Gaol, S. L.; Indrawan, D. Uncovering Financial Performance and Efficiency: A Glimpse into Indonesia's State-Owned Enterprises (SOEs) Construction Industry Debt and Financial Risk. Preprints2024, 2024060832. https://doi.org/10.20944/preprints202406.0832.v1
Wibowo, F. A.; Satria, A.; Gaol, S. L.; Indrawan, D. Uncovering Financial Performance and Efficiency: A Glimpse into Indonesia's State-Owned Enterprises (SOEs) Construction Industry Debt and Financial Risk. Preprints 2024, 2024060832. https://doi.org/10.20944/preprints202406.0832.v1
Wibowo, F. A.; Satria, A.; Gaol, S. L.; Indrawan, D. Uncovering Financial Performance and Efficiency: A Glimpse into Indonesia's State-Owned Enterprises (SOEs) Construction Industry Debt and Financial Risk. Preprints2024, 2024060832. https://doi.org/10.20944/preprints202406.0832.v1
APA Style
Wibowo, F. A., Satria, A., Gaol, S. L., & Indrawan, D. (2024). Uncovering Financial Performance and Efficiency: A Glimpse into Indonesia's State-Owned Enterprises (SOEs) Construction Industry Debt and Financial Risk. Preprints. https://doi.org/10.20944/preprints202406.0832.v1
Chicago/Turabian Style
Wibowo, F. A., Sahala Lumban Gaol and Dikky Indrawan. 2024 "Uncovering Financial Performance and Efficiency: A Glimpse into Indonesia's State-Owned Enterprises (SOEs) Construction Industry Debt and Financial Risk" Preprints. https://doi.org/10.20944/preprints202406.0832.v1
Abstract
This study aims to evaluate the financial performance of SOEs in Indonesia and compare it with private companies using financial ratio analysis and efficiency analysis approaches. Four construction sector SOEs were evaluated, and five private companies were compared using financial data from 2015 to 2022. The financial ratio analysis used the Peterson (2013) approach, while the efficiency analysis employed the data envelopment analysis (DEA) approach and the paired t-test. The study results show that the financial ratio performance of state-owned companies is relatively poor, with low profitability, critical liquidity, and a high debt ratio. Debt, as a source of capital in financing construction projects, makes companies face a greater debt risk. This study validates that SOEs have lower efficiency compared to private companies.
Keywords
construction industry; debt; efficiency; financial performance; state-owned enterprises (SOEs)
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
