The effect of the crisis on financial performance of property sector in Indonesia

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Usually, financial crisis affects the firm’s operations with different resistance level, such as financial difficulties and even negative profits or equity. The crisis may affect heavily certain industry, but not in the other industry. This study examines the financial performance of property and real estate firms listed on the Indonesian Stock Exchange which was argued to have been affected by 2008 global financial crisis. Five ratios were examined, namely liquidity ratio, debt to equity ratio, total assets turnover, net profit margin, and return on equity. The sample consists of 27 firms. Results showed that two ratios, debt to equity ratio and return on equity ratio, were significantly lower after the crisis. The other three ratios were not significantly different between before and after the crisis.

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    • Table 1. Statistic descriptive of variables
    • Table 2. Results of tests of data normality
    • Table 3. Results of test of mean (median) difference of financial performance, before and after the crisis