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ability of retail companies to pay short term liabilities
tends to decrease. However, if you pay attention to
the average before and after impact of the digital
economy, there is no difficulty because it is still
above the normal limit of 2: 1. The change in CR after
the above before in the statistical findings is not
significant. It means that the impact of the two-year
digital economy of retail companies still has a
positive CR value.
The leverage ratio proxy by DAR and DER has a
different development. The DAR increase of 46.9%
as a result of digital economy indicates that retail
companies add a higher external funding source,
namely 46.9%. Table 8 shows that the average two
years before the DAR digital economy is 12.2%. The
impact of digital economy causes a high increase in
debt, namely 46,% to 59.1%. Based on the statistical
test Z Wilcoxon found results that statistically the
solvency ratio after the digital economy occurs is
insignificant. This means that the average value after
and before the digital economy does not give a real
influence that retail companies change funding
decisions. These findings are consistent with the
findings of the study (Widjajanti, 2010) that the
occurrence of privatization does not contribute
significantly to the leverage ratio. These findings not
consistent with (Kaniel & Parham, 2016) about
causality between media attention and consumer
investment behavior, independent of the conveyed
information.
The calculation of profitability ratios proxy by
ROA and ROE shows a change in decline. This
means that the impact of digital economy has
evidence empirical, retail companies experience a
decline in net income. The decrease in the average
difference is quite high on the ROE variable of
21.7%, which mean that the retail company's net
profit target is not achieved as a result the capital used
for sales activities is relatively ineffective in
generating an increase in net income. The Wilxocon
statistical test found significant results, meaning that
the change in the decrease in ROE after the digital
economy occurred was empirically proven. The
results has same as (Edeling & Himme, 2018) but
different from (Widjajanti, 2010) where results are
found to be insignificant as a result of privatization.
6 CONCLUSION, LIMITATION
AND SUGGESTION
The financial ratio that is significantly after the
digital economy occurs is the activity ratio and
profitability ratio. The activity ratio is proxy by
inventory turnover and total asset turnover while the
profitability ratio is proxy by return on assets and
return on equity. On average, all financial ratios have
decreased performance. The decrease in the highest
average difference is return on equity and the lowest
current ratio. Profitability ratios that experience a
decline can be interpreted as a retail company
experiencing a decline in sales. This condition can be
seen that the level of inventory turnover is decreasing
is a reflection of the inventory that accumulates in the
warehouse is high enough so that the sales cycle has
decreased.
The topic of this study is very interesting and
relevance is in accordance with the real conditions
facing Indonesia today. The impact of industry 4.0 on
various business sectors not only in the trade sector
for retail companies but also disruptive all fields of
business such as transportation, medical, commerce,
tourism, education, health and so on. The conclusion
of this study only applies to retail companies, whereas
other business sectors allow changes in financial
performance. Further research is recommended to
conduct empirical testing for other business sectors so
that conclusions will be obtained more
comprehensively.
Another limitation of this study only examines the
impact of digital economics using variable financial
ratios such as liquidity, solvency, activity on
profitability so this finding only limited to the
company's fundamentals even though market
performance will be very important, especially for
investors. Subsequent research can add market ratio
variables so that it will complement this study and be
useful for investors in financial investment decision
making.
REFERENCES
Ayres, R. U., & Williams, E. (2004). The digital economy :
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Social Change, 71, 315–339.
https://doi.org/10.1016/j.techfore.2003.11.001
Barclay, M. J., & Smith, C. W. (1995). The Maturity
Structure of Corporate Debt. The Journal of Finance,
L(2), 609–631.
Barth, A. J. R., & Miller, S. M. (2018). Benefits and Costs
of a Higher Bank “Leverage Ratio.” Journal of
Financial Stability.
https://doi.org/10.1016/j.jfs.2018.07.001
Carlsson, B. (2004). The Digital Economy : what is new
and what is not ? Structural Change and Economic
Dynamic, 15, 245–264.
https://doi.org/10.1016/j.strueco.2004.02.001
SEABC 2018 - 4th Sriwijaya Economics, Accounting, and Business Conference
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