Analysis of Financial Health and Company Performance: a Comparative Study between Foreign and Non-Foreign Ownership Structures

ABSTRACT : The company’s performance reflects the company’s productivity and ability to generate profits based on the management of its assets. The existence of an assessment of the company’s financial health to predict the bankruptcy of the company can affect the company’s performance in the future. The purpose of this study was to determine the effect of the company’s financial health on company performance between companies with foreign and non-foreign ownership structures listed on the Indonesia Stock Exchange in 2018- 2019. The number of samples taken was 131 companies using the purposive sampling method. Data collection was carried out by non-participant observation method and analyzed using simple linear regression. Based on the analysis, the financial health of companies with foreign ownership structures has a positive effect on company performance and companies with non-foreign ownership structures have the same effect. This shows that both companies with foreign ownership structures and non-foreign ownership have no different effects.
KEYWORDS: financial health, company performance, Altman Z-Score