The Impact of Covid-19 Pandemic on Financial Performance of Companies Go Public in Indonesia

Abstract

The spread of Corona Virus Disease (COVID-19) cause devastating effect on board aspects including economic growth. Companies face the decrease in business performance which is caused by the supply and demand aspects. This study aims to investigate the difference of financial performances public companies in Indonesia before the COVID-19 outbreak and during the pandemic in 2019 and 2020. This study used 136 public listed firms in Indonesia in 2019 and 2020. The data were tested using one sample paired t-test. The findings shows that there was significant difference on the average revenue and ROA before the COVID-19 outbreak and during the outbreak in 2019 and 2020. The total revenue and ROA were significantly decreased during the pandemic. This study gives a new perspective on the measurement of financial performances during the COVID-19. This study also provides empirical evidence on the financial performances during the COVID-19 outbreak from institutional theory perspective.