Analysis of financial performance and stock performance on Indonesia technology sector: study of seven Indonesian technology public companies in 2016-2020 period
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Institusion
Sekolah Tinggi Manajemen Ipmi
Author
Yonas, Vincent Rafael
Subject
H Social Sciences (General)
Datestamp
2023-03-30 02:30:49
Abstract :
Digitalization era has boosted the technology sector in Indonesia, other sectors and institutions also transform their activities into digital. IDX release new index for technology sector named IDXTECHNO, it has spectacular growth since the release data followed with many technology companies were going public. Sector using companies that already have listed in the market for more than five years. This study aims to analyse Indonesia technological sector performance using seven Indonesian technology companies during 2016-2020. The methodology that used for this study are financial ration analysis, CAGR analysis, beta analysis, T-test analysis, and F-test analysis to examine the variables. Financial ratios that were used are profitability, liquidity, operating return, multiplier, and leverage. T-test analysis is to find the mean differences between portfolio return and market return while the F-test analysis is to find the variance differences. The findings from this study shows that technological sector has higher risk compared to the market but the return statistically same with market return. Despite good liquidity and good multiplier, tech companies still show poor performance in profitability, operating return, and leverage. Although the companies have got high debt to equity ratio, companies are still able shows capability to pay interest expense.
Digitalization era has boosted the technology sector in Indonesia, other sectors and institutions also transform their activities into digital. IDX release new index for technology sector named IDXTECHNO, it has spectacular growth since the release data followed with many technology companies were going public. Sector using companies that already have listed in the market for more than five years. This study aims to analyse Indonesia technological sector performance using seven Indonesian technology companies during 2016-2020. The methodology that used for this study are financial ration analysis, CAGR analysis, beta analysis, T-test analysis, and F-test analysis to examine the variables. Financial ratios that were used are profitability, liquidity, operating return, multiplier, and leverage. T-test analysis is to find the mean differences between portfolio return and market return while the F-test analysis is to find the variance differences. The findings from this study shows that technological sector has higher risk compared to the market but the return statistically same with market return. Despite good liquidity and good multiplier, tech companies still show poor performance in profitability, operating return, and leverage. Although the companies have got high debt to equity ratio, companies are still able shows capability to pay interest expense.
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