Financial Distress Analysis Using the Ohlson Model in Indonesian State Owned Enterprises

Krismularso Seno Pamungkas (Magister Manajemen, FEB UI, Jalan Salemba Raya 4 DKI Jakarta 10430)

Journal of Accounting and Finance Management (JAFM)
Vol. 3 No. 6 (2023): Journal of Accounting and Finance Management (January - February 2023)

This study aims to analyze financial distress conditions using the Ohlson financial distress model in SOEs Non-Financial Sector for the 2017-2020 financial year performance period. The object of analysis is non-financial and banking SOEs registered under Ministry of SOEs. The results of the study are: 1) The aggregate probability of default for all SOEs has increased from 2017 to 2020; 2) the highest increase is the Probability of Default in 2020 compared to the Probability of Default in 2019; 3) SOEs in the Tourism Sector are the sectors that experience the most financial distress in 2020, while the Plantation and Forestry sector are the least financial distress in 2020; 4) SOEs in the same sector may show a different trend of increasing/decreasing Probability of Default.