Abstract:

This study aims to analyze the bankruptcy risks among Indonesian construction firms during different presidency regimes. We use 50 construction firms listed on the Indonesian stock exchange based on three prediction measurements: Z-score, Z’’-score, and S-score for the 2014 and 2018 periods, reflecting the end of President Susilo Bambang Yudhoyono’s period and the end of the first President Jokowi’s period. Regression analysis was conducted  and we found that bankruptcy prediction scores, Z-score and Z”-score, increased from 2014 to 2018.  However, the S-score shows a different result. It is found from the regression analysis that there is a significant difference in the bankruptcy risk of construction firms in different presidency periods. This analysis has controlled for firms’ size, business risk, and degree of financial leverage.