Mas'ud Machfoedz(1*)

(1) Universitas Gadjah Mada
(*) Corresponding Author


Almost all companies listed in ASEAN country capital markets have dropped
their financial performance since the accounting year of 1997. In Indonesia, more
than sixty per cent of companies listed in Jakarta Stock Exchange did not or did not
dare to publish their mandatory annual financial statements to avoid publishing their
poor performance. The similar situation has also been felt by other ASEAN country
capital markets. The question that was relevant to be raised: are the poor financial
performance of companies listed in the ASEAN country capital markets caused by the
sudden crisis or by long experience of poor financial performance?
This study intents to answer the above question, whether the crisis or longtime
of poor financial performance caused the company financial problems. Samples were
taken from companies listed in four major capital market of ASEAN, namely:
Thailand, Singapore, Malaysia, and Indonesia. Pooled time series data consist of 132
data included in the sample for three year periods of 1993, 1994, and 1995 for 44
companies. The parametric and non-parametric statistic methods q/"t-tests, Wilcoxon
Ranks Sign Test, MANOVA, and Friedman K-Samples were used to test the
The results indicate that Thailand has the weakest financial performance,
followed by Indonesia, Singapore, and then Malaysia, when they are compared to the
empirical standards of financial performance. This study used The standards of
financial performance that were introduced by Beaver (1966 and 1968), Altman
(1968), and Zmejewski (1984). Intuitively, this study concluded that the poor
financial performances have already long been suffered by companies listed in
ASEAN country capital markets before the monetary crisis. The crisis has just opened
the hidden problems.

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