Abstract:

The aim of this study is to examine Indonesia agricultural sector performance by studying bankruptcy risks of the public listed companies. This research also attempts to examine the influence of some companies’ characteristics such as cost efficiency, firm size, leverage, capital intensity, firm age, and independent auditor on the bankruptcy risks. Indonesia is taken as a sample since its background as a big populous country where the national program of strategy food security is then even more important than non-big populous country. Taking long horizon periods of 2003-2017, this study provides a more thorough analysis. The results show that most Indonesia listed agricultural companies are in a grey zone. The study also found that if companies’ sale is high and the companies’ can maintain cost efficiency, the companies will be in a good financial health. The findings bring implications on urgent actions that can improve the performance of the agricultural companies including an evaluation of economic reform on agricultural sector.