Company Value Before and During COVID-19: Evidence from the Property and Real Estate Industry in Indonesia

Authors

  • Wiwiek Mardawiyah Daryanto Sekolah Tinggi Manajemen IPMI

DOI:

https://doi.org/10.12695/jmt.2022.21.1.3

Abstract

Abstract. The objective of this research is to gauge the impact of financial performance and maturing long-term debt on firm's value during the COVID-19 pandemic. The study comprises the collection of data on nine big property-sector companies and analysis via quantitative methods, namely panel-data-regression models. Its results demonstrate that only commercial property revenue and COVID-19 had a substantial negative impact on firms’ value. Meanwhile, F-Test findings indicate that the independent variable had an influence on the firms’ value, at a p-value of (0.0037). This means that commercial property income may be used to describe the worth of major firms in the property sector, which investors should consider when selecting investments. Furthermore, property- and real- estate-sector companies should provide policies and regulations to safeguard commercial income toward maintaining their assets and surviving in the COVID-19 era. This study fills a research gap by exploring effects on the property and real estate industry during the COVID-19 crisis, as a benchmark for comparison.

Keywords: COVID-19, firm value, financial performance, maturing long-term debt

 

Abstrak. Tujuan dari penelitian ini adalah untuk mengukur dampak kinerja keuangan dan jatuh tempo utang jangka panjang pada nilai perusahaan selama pandemi COVID-19. Studi ini meliputi sembilan perusahaan besar sektor properti dan analisis melalui metode kuantitatif, yaitu model regresi data panel. Hasilnya menunjukkan bahwa hanya pendapatan properti komersial dan COVID-19 yang memiliki dampak negatif substansial pada nilai perusahaan. Sementara itu, hasil uji F menunjukkan bahwa variabel independen berpengaruh terhadap nilai perusahaan, pada p-value (0,0037). Ini berarti bahwa pendapatan properti komersial dapat digunakan untuk menggambarkan nilai perusahaan besar di sektor properti, yang harus dipertimbangkan investor saat memilih investasi. Selain itu, perusahaan sektor properti dan real estate harus memberikan kebijakan dan peraturan guna menjaga pendapatan komersial untuk mempertahankan aset mereka dan bertahan di era COVID-19. Studi ini mengisi celah penelitian dengan mengeksplorasi efek pada industri properti dan real estat selama krisis COVID-19, sebagai tolok ukur perbandingan.

Kata kunci: COVID-19, nilai perusahaan, kinerja keuangan, utang jangka panjang yang akan jatuh tempo

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Submitted

2021-12-24

Accepted

2021-12-28

Published

2022-04-28

How to Cite

Daryanto, W. M. (2022). Company Value Before and During COVID-19: Evidence from the Property and Real Estate Industry in Indonesia. Jurnal Manajemen Teknologi, 21(1), 33–47. https://doi.org/10.12695/jmt.2022.21.1.3

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Articles