The Impact of Financial and Operational Indicators on Firm Risk: Evidence from Indonesian Consumer Companies with Pandemic Crisis as a Moderating Factor

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Meralda Hanif, Alayya (2025) The Impact of Financial and Operational Indicators on Firm Risk: Evidence from Indonesian Consumer Companies with Pandemic Crisis as a Moderating Factor. Graduate thesis, Institut IPMI.

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Abstract

This thesis looks at the factors that influence consumer firm risk in Indonesia, with a moderating effect from the COVID-19 pandemic. The factors that are examined include the debt-to-equity ratio, return on equity, inventory turnover ratio, and distribution cost. Leverage, profitability, and operational efficiency are examined in relation to consumer firm risk, as well as whether the pandemic affects these relationships. Using data from 28 publicly listed consumer goods firms between 2014 and 2024, firm risk is measured through stock return volatility and analyzed using panel data regression models. Return on equity and inventory turnover show more complex effects, especially during times of crisis, while the debt-to-equity ratio and distribution cost are constant and substantial drivers of consumer firm risk, according to the research. The analysis shows that profitability alone does not sufficiently protect firms from volatility, whereas operational efficiency and effective cost management are crucial in enhancing resilience. Furthermore, the findings emphasize the necessity of taking crisis circumstances into account when examining firm-level vulnerabilities, confirming that the COVID-19 pandemic changed the impact of some internal determinants on risk. Keywords: Firm Risk, Consumer Goods Industry, Debt-to-Equity Ratio, Return on Equity, Inventory Turnover Ratio, Distribution Cost, COVID-19.

Item Type: Thesis (Graduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Bachelor of Business Administration
Depositing User: Dwi Selviyana
Date Deposited: 17 Dec 2025 04:18
Last Modified: 17 Dec 2025 05:00
URI: http://repository.ipmi.ac.id/id/eprint/2898

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