There are three state-owned companies that match with the criteria. One is in the cement industry (PT. Semen Gresik) and two are in pharmaceutical industries (PT. Kimia Farma and PT. Indo Farma).
Data for this study are the financial ratios that can be calculated from financial statement. The data are taken from Indonesian Capital Market
Directory 2002 and from www.bumn.go.id/financial.html. The financial ratios have been chosen from previous literature and research,
(Machfoedz, 1994: 118)
To restate the historical accounting of financial statement to the general price level adjusted accounting, there are some assumptions include: