<![CDATA[COVID-19 pandemic has had a significant impact on retail companies. “Stay at home” policy reduce sales products significantly distributed through retail channels. The potential risk of bankruptcy is a threat to the retail companies existency. This research aims to prove empirically how income smoothing earnings management, company strategy (cost leadership and differentiation), and the COVID-19 pandemic influence bankruptcy risk. This research took a sample of 23 retail trading subsector companies listed on the Indonesia Stock Exchange (IDX) in the first to the fourth quarter of 2019-2020. The method used in this research is Multiple Linear Regression. The results show that income smoothing earnings management has a positive relationship with bankruptcy risk. In addition, if a company implements a cost leadership strategy in its business, it will reduce the risk of bankruptcy borne by the company. On the other hand, differentiation strategy and the COVID-19 pandemic do not have a significant effect on bankruptcy risk.]]>
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