Abstract
Many pharmaceutical companies run into financial problems, while the pharmaceutical sub-sector is a vital industry that manufactures and sells pharmaceutical products in Indonesia. Currently the pharmaceutical sub-sector faces government policies related to the application of e-catalogs, BPJS health policies and very high dependence on raw materials in producing drugs. The panel data regression method is used with two models of financial distress companies, altans and DSC in predicting financial problems with a sample of 7 companies that have been listed on the Indonesian stock exchange. In addition, this study was conducted to determine the condition of financial distress on stock returns. The results are known to show that there is a decrease in financial ratios in each company, this has implications for the decline in the financial distress model. At the same time it was known that there was a decline in returns of shares from each pharmaceutical company.
Highlights
Consumption industry is industries that has increased in value every year, but in 2015 to 2016 the percentage decreased compared to other industries
3) SOE domestic investment consisting of KAEF and INAF which have advantages in generic drug products
In the category of business type only KAEF has a type of retail business in addition to its principal, namely manufacturing
Summary
Consumption industry is industries that has increased in value every year, but in 2015 to 2016 the percentage decreased compared to other industries. It is known that the pharmaceutical sub-sector has a large share in business activities in real and financial terms. From 2011 to 2016 all sub-sectors in the consumption industry experienced fluctuations in contributing. The pharmaceutical sub-sector is one of the sub-sectors that enter the consumption industry. It is known that the pharmaceutical sub-sector has a percentage reduction of one percent annually. Whereas the pharmaceutical sub-sector which is a vital industry that produces and sells medicinal products in Indonesia. It is known that 50-60 percent of the turnover of the pharmaceutical sub-sector is known to be sourced from hospitals which are health service units. It was explained that the pharmaceutical sub-sector ranks 4th rank (software, oil and food) with a percentage of profit of 13.27 percent where the industry average is 10.19 percent
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