scholarly journals MODEL PREDIKSI FINANCIAL DISTRESS : PENGARUHNYA TERHADAP KINERJA SAHAM INDUSTRI TEKSTIL DAN GARMEN DI INDONESIA

BISMA ◽  
2020 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Suskim Riantani ◽  
Sherly Delvia ◽  
Gugun Sodik
Keyword(s):  
Stock Returns ◽  
Financial Distress ◽  
Descriptive Analysis ◽  
Market Value ◽  
Garment Industry ◽  
Z Score ◽  
Financial Problems ◽  
Verification Methods ◽  
The Impact ◽  
Retained Earnings

This study aims to predict the possibility of Financial distress in the textile and garment industry using the Altman Z-score prediction model and analyze the impact of Financial distress on the company's stock performance as measured by stock returns. This research used descriptive analysis and verification methods. Applying a purposive sampling method, the research sample consisted of 15 issuers from the textile and garment industry during the observation period of 2012-2016. This research used panel data regression to analyze research data. The results showed that one company did not experience financial problems, one company had potential financial problems, and the 13 other companies experienced Financial distress. The results of model testing showed that Altman Z-score can be used to predict Financial distress conditions in the textile and garment industry for the 2012-2016 period. The results of hypothesis testing showed that only one ratio of the Altman Z-score model has a significant effect on stock returns, i.e., market value of equity to book value of debt, while other ratios of working capital to total assets, retained earnings to total assets, earnings before interest and taxes to total assets, and sales to total assets have no significant effect on stock returns. These findings imply that the investors in the textile and garment industry attentively observe the company's market value in making any investment decisions. Keywords: Altman Z-score, Financial distress, stock returns, textile and garment industry

ANALISIS RASIO KEUANGAN UNTUK MEMPREDIKSI FINANCIAL DISTRESS PERUSAHAAN MANUFAKTUR DI BEI

2021 ◽  
Vol 9 (3) ◽  
pp. 31-40
Author(s):  
Akhmad Kurniadi
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Market Value ◽  
Z Score ◽  
Working Capital ◽  
Book Value ◽  
Discriminant Model ◽  
Validation Rate ◽  
Value Equity ◽  
Retained Earnings

ABSTRACT This study aims to examine the prediction of the company's financial difficulties using the Altman Z-score 1968 model and the effect of financial ratios including working capital to total assets, retained earnings to total assets, earnings before interest and tax to total assets, market value equity to book value. of total liabilities, and sales to total assets on financial distress. The sample used in this study is a manufacturing company listed on the Indonesia Stock Exchange (BEI) 2015-2019. Sampling in this study using purposive sampling method and obtained 64 companies. The results showed that the variables Working Capital to Total Assets (X1), Retained Earnings to Total Assets (X2), Earnings Before Interest and Tax to Total Assets (X3), Market Value Equity To Book Value of Total Liabilities (X4), and Sales to Total Assets (X5) has a positive effect on financial distress, and the most significant effect on financial distress is the variable Retained Earnings to Total Assets. From the results of SPSS 17.0 processing, the equation Z = -1,813 + 1,216 X1 + 1,837 X2 + 0.122 X3 + 0.070 X4 + 0.506 X5 is produced. Meanwhile, the discriminant model that was formed had a high enough validation rate, namely 97.6%. Keywords: Financial ratio analysis; Financial distress; Altman Z-score

scholarly journals Analisis Pengaruh Rasio Keuangan Terhadap Potensi Terjadinya Financial Distress

2020 ◽  
Vol 16 (3) ◽  
pp. 297-311
Author(s):  
Amila Rezky Mufida
Keyword(s):  
Real Estate ◽  
Financial Distress ◽  
Market Value ◽  
Z Score ◽  
Working Capital ◽  
Retained Earnings

Penelitian ini bertujuan untuk menganalisis pengaruh rasio Working Capital to Total Assets (WCTA),  Retained Earnings to Total Assets (RETA), Earning Before Interest and Taxes to Total Assets (EBITTA), dan Market Value of Equity to Total Liabilities (MVETL) terhadap potensi terjadinya financial distress. Penelitian ini menggunakan model Altman Z-Score Modifikasi untuk mengukur prediksi financial distress dengan objek penelitian yaitu perusahaan jasa sub sektor property dan real estate yang terdaftar di BEI periode 2014-2018. Penelitian ini menggunakan pendekatan kuantitatif dan menggunakan metode purposive samplingdalam menentukan 10 perusahaan sebagai sampel. Data sekunder yang digunakan diperoleh dari situs BEI dan situs perusahaan serta dianalisis dengan regresi logistik binary. Hasil penelitian ini menunjukkan bahwa rasio WCTA, EBITTA, dan MVETL secara parsial berpengaruh terhadap financial distress, sedangkan rasio RETA secara parsial tidak berpengaruh terhadap financial distress.

scholarly journals PREDIKSI FINANCIAL DISTRESS PADA PT. BANK RAKYAT INDONESIA (Persero) TBK. SEBELUM DAN SEMASA PANDEMI COVID-19

2021 ◽  
Vol 6 (1) ◽  
pp. 20-25
Author(s):  
Didi Rahmat
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Financial Distress ◽  
Market Value ◽  
Z Score ◽  
Working Capital ◽  
Book Value ◽  
Gray Area ◽  
Normal Period ◽  
Retained Earnings

This study aims to see how the financial performance of PT. Bank Rakyat Indonesia (Persero) Tbk. studied from the Financial Distress approach. The data taken is from the period 2017 to 2019 (normal period) and 2020 (the period of the Covid-19 pandemic in Indonesia). Altman Z Score is used as an approach in data analysis by using five indicators, Working capital to total assets (WCTA), Retained earnings to total assets (RETA), Earnings before interest and taxes to total assets (EBITTA), Market Value of equity / Book value of debt (MVEBVD) and Sales / total assets (SATA). From the results of data analysis, it was found that before the Covid-19 pandemic the company was classified as healthy. Changes occurred during the Pandemic the company was in the Gray Area which meant there were financial problems.

scholarly journals Usability of Z Score: A Case Study on Peoples Leasing and Financial Services Limited & Bangladesh Industrial Finance Company Limited

2020 ◽  
pp. 38-46 ◽  
Keyword(s):  
Discriminant Analysis ◽  
Financial Services ◽  
Financial Distress ◽  
Early Stage ◽  
Descriptive Analysis ◽  
Z Score ◽  
Multiple Discriminant Analysis ◽  
Finance Company ◽  
Score Model ◽  
Retained Earnings

This study aims to identify whether or not the Z score is usable enough in doing prediction at the early stage of the financial distress of People’s Leasing and Financial Services (PLFS) and Bangladesh Industrial Finance Company (BIFC). To predict corporate failure, Multiple Discriminant Analysis is an effective solution. Z"-Score by Altman is a widely used model of multiple discriminant analysis. Using the data from 2011 to 2017 of PLFS and 2015-2017 of BIFC, this study applied the Altman Z"-Score Model as well as used SPSS software to analyze the descriptive statistics of the financial information and ratios of both company to know the level of financial distresses and attributes for reaching toward distress level. The analysis was presented in tables. The finding shows that Z"-Score by Altman is usable enough to predict the failure of the firm. The descriptive analysis shows that working capital, retained earnings, and income before interest and tax were negative which could be considered as the reasons for the distressed position. This study contributes by showing the usefulness of the Z score of Altman in emerging countries like Bangladesh. This is significant because early prediction can prevent liquidation which ultimately protects various stakeholders of an organization.

scholarly journals Analysis Of Financial Health Level On Financial Performance In Cement Companies Listed On The Indonesian Stock Exchange (Idx)

2020 ◽  
Vol 18 (3) ◽  
pp. 125
Author(s):  
Dhea Zatira ◽  
Ria Puspitasari
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Market Value ◽  
Financial Health ◽  
Z Score ◽  
Working Capital ◽  
Book Value ◽  
Panel Data Regression ◽  
Data Regression ◽  
Retained Earnings

This study aims to analyze the Level of Financial Soundness on Financial Performance in Cement Companies that are Go Public Listed on the Indonesia Stock Exchange (BEI). Analysis of the level of financial health using the Altman Z-Score with several ratios, namely the ratio of Working Capital to Total Assets (X1), the ratio of retained earnings to total assets (X2), the ratio of EBIT to Total Assets (X3), the ratio of stock market value to book value ofabilities (X4), the ratio of Sales to Total Assets (X5) to the dependent variable on Financial Performance (Return on Assets). The data analysis technique used in this research is the Altman Z-Score with the criteria for bankruptcy and to find its effect with the panel data regression model assisted by E-Views software. The results of the calculation and analysis of the Z-Score criteria in cement companies in Indonesia, it is known that there is no cement company whose company finances are stated in a healthy condition. One company is prone to bankruptcy (gray zone) while the rest according to the Z-Score criteria are bankrupt. Furthermore, based on the panel data regression examiner simultaneously the five independent variables on financial performance (Y), while partially the working capital ratio to total assets (X1) affects financial performance (Y), the retained earnings ratio to total assets (X2) has no effect on Financial performance (Y), EBIT ratio to total assets (X3) affects financial performance (Y), stock market value ratio to book value of liabilities (X4) has no effect on financial performance (Y), Sales to Total Assets ratio (X5) affect financial performance.

scholarly journals The impact of liquidity and size premium on equity price formation in Serbia

2012 ◽  
Vol 57 (195) ◽  
pp. 43-78 ◽  
Author(s):  
Jelena Minovic ◽  
Bosko Zivkovic
Keyword(s):  
Asset Pricing ◽  
Stock Returns ◽  
Firm Size ◽  
Market Value ◽  
Asset Returns ◽  
Factor Models ◽  
Price Formation ◽  
Good Tool ◽  
Equity Price ◽  
The Impact

The goal of this paper is to examine the impact of an overall market factor, the factor related to the firm size, the factor related to the ratio of book to market value of companies, and the factor of liquidity risk on expected asset returns in the Serbian market. For this market we estimated different factor models: Capital Asset Pricing Model (CAPM by Sharpe, 1964), Fama-French (FF) model (1992, 1993), Liquidity-augmented CAPM (LCAPM) by Liu (2006), and combination LCAPM with FF factors. We used daily data for the period from 2005 to 2009. Using a demanding methodology and complex dataset, we found that liquidity and firm size had a significant impact on equity price formation in Serbia. On the other hand, our results suggest that the factor related to the ratio of book to market value of companies does not have an important role in asset pricing in Serbia. We found that Liu?s two factor LCAPM model performs better in explaining stock returns than the standard CAPM and the Fama-French three factor model. Additionally, Liu?s LCAPM may indeed be a good tool for realistic assessment of the expected asset returns. The combination of the Fama-French model and the LCAPM could improve the understanding of equilibrium in the Serbian equity market. Even though previous papers have mostly dealt with examining different factor models of developed or emerging markets worldwide, none of them has tested factor models on the countries of former Yugoslavia. This paper is the first to test the FF model and LCAPM with FF factors in the case of Serbia and the area of ex-Yugoslavia.

scholarly journals FINANCIAL CONDITION MODERATED THE EFFECTIVENESS OF AUDIT COMMITTEETOREDUCE EARNINGSMANAGEMENT

2015 ◽  
Vol 12 (2) ◽  
Author(s):  
Michella Maria Virgine Prayogo ◽  
Yie Ke Feliana ◽  
Aurelia Carina Christanti Sutanto
Keyword(s):  
Earnings Management ◽  
Financial Distress ◽  
Audit Committee ◽  
Stock Exchange ◽  
Score Test ◽  
Z Score ◽  
Financial Condition ◽  
Activity Frequency ◽  
Distressed Firms ◽  
The Impact

Some cases of financial fraud invite inquiries about the effectiveness of corporategovernance mechanism in financial distress companies. This study empiricallyexamines whether the financial distress moderate the impact of corporate governancemechanism to earnings management. The sample of this study is manufacturingcompanies listed at Indonesia Stock Exchange for period 2010 -2012. Discretionaryaccruals are used as a proxy for earnings management, while financially distressed andnon-distressed firms are identified based on Altman Z-score test. Corporate governancemechanism is measured by four characteristics of the audit committee, i.e. size (totalnumber of audit committee members), independence (audit committee composition),activity(frequency of audit committee meeting), and expertise (the number of auditcommittee have finance or accounting background).This study finds that (1) financialdistress does not moderate the impact of total members of audit committee to earningsmanagement; (2) financial distress does not moderate the impact of frequency of auditcommittee meeting to earnings management; (3) financial distress does not moderatethe impact of audit committee composition to earnings management; (4)financialdistress moderates the impact of audit committee finance/accounting knowledge toearnings management. These results suggestthat the effectiveness corporate governanceis low, and finance/accounting literacy of audit committee should be alert.Beberapa kasus manipulasi keuangan pada perusahaan yang mengalami kesulitankeuangan mengundang pertanyaan terkait efektifitas mekanisme tata kelola perusahaan.Penelitian ini secara empiris menguji apakah kondisi kesulitan keuangan dapatmemoderasi pengaruh mekanisme tata kelola perusahaan terhadap manajemen laba.Sampel dari penelitian ini adalah perusahaan sektor manufaktur yang terdaftar di BursaEfek Indonesia periode 2010-2012.Discretionary accruals digunakan sebagai proksiuntuk manajemen laba, sedangkan kondisi kesulitan keuangan diidentifikasimenggunakan uji Altman Z-score. Mekanisme tata kelola perusahaan diukur dengan 4karakteristik komite audit, yaitu ukuran (jumlah anggota komite audit), independensi(komposisi komite audit), aktivitas (frekuensi pertemuan komite audit), dan keahlian(jumlah anggota komite audit yang memiliki latar belakang keuangan atau akuntansi).Penelitian ini menemukan bahwa (1) kondisi kesulitan keuangan tidak memoderasipengaruh jumlah anggota komite audit terhadap manajemen laba; (2) kondisi kesulitankeuangan tidak memoderasi pengaruh frekuensi pertemuan komite audit terhadapmanajemen laba; (3) kondisi kesulitan keuangan tidak memoderasi pengaruh komposisikomite audit terhadap manajemen laba; (4) kondisi kesulitan keuangan memoderasi pengaruh jumlah anggota komite audit yang memiliki latar belakang keuangan atauakuntansi terhadap manajemen laba. Hasil ini menunjukkan bahwa efektifitas tatakelola perusahaan masih rendah dan anggota komite audit yang memiliki latar belakangkeuangan atau akuntansi harus mewaspadainya.

The impact of corporate social responsibility on financial distress: evidence from developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farooq ◽  
Amna Noor
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Distress ◽  
Z Score ◽  
Socially Responsible ◽  
Content Type ◽  
Financial Firms ◽  
Responsible Behavior ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to explore the role of corporate social responsibility (CSR) on the likelihood of financial distress for a sample of 139 Pakistan Stock Exchange (PSX) listed firms throughout 2008–2019. Design/methodology/approach The dynamic generalized method of moments (GMM) estimator is used to examine the impact of CSR on financial distress. The investment in CSR is measured through a multidimensional financial approach which comprises the sum of the contribution made by the company in the form of charitable donation, employees’ welfare and research and development, while the Altman Z-score is used as an indicator of financial distress. The higher the Z-score, the lower will be the probability of financial distress. Findings The authors find a significant positive impact of CSR on financial distress in GMM model. This finding is consistent with the shareholder view and over-investment hypothesis of CSR as management makes an investment in CSR to get personal benefits, which resultantly leads the firm toward financial distress state. Further, this positive relationship remains present for firms having strong involvement in foreign business through exports. Research limitations/implications Like other studies, the present study is not free from limitations. First, financial firms are skipped from the sample, although literature witnesses a lot of studies highlight the financial firms’ commitment to achieving CSR goals. Second, financial distress occurs in different stages, and this study fails to establish a linkage between CSR engagement at different stages of financial distress. In the future, researchers can make valuable addition by covering these missing links in present studies. Practical implications Findings suggest several practical implications. For policymakers, they should encourage firms to adopt more socially responsible behavior as it not only prevents them from distress but also comes with better investment behavior, minimize bankruptcies and make economies more strong and stable. Second, results suggest corporate managers emphasize socially responsible behavior as its benefits are beyond the “societal benefits” as it lessens financial distress through lower cost of debt, lesser financial constraints and reduced cost of information asymmetry, and it minimizes the cost of capital. Lastly, investors make risk premium assessments related to future earnings by determining the likelihood of financial distress in the future. Originality/value The study extends the body of existing literature on CSR and the likelihood of financial distress in Pakistan, which is according to the best knowledge of the authors, not yet studied before. The results suggest that policymakers may pay special attention to the quality of CSR while predicting corporate financial distress.

scholarly journals Analisis Perbandingan Financial Distress Pada Perusahaan Sub Sektor Rokok Periode 2015-2019

2021 ◽  
Vol 3 (3) ◽  
pp. 157-163
Author(s):  
Anang Makruf ◽  
Deni Ramdani
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Market Value ◽  
Sampling Technique ◽  
Z Score ◽  
Book Value ◽  
Purposive Sampling ◽  
Quantitative Models ◽  
A Company ◽  
Analyze Data

Abstract – The aim of the study was to analyze financial distress in cigarette companies list in Indonesia Stock Exchange in 2015-2019 using 3 methods, Altman Z-Score, Zmijewski, and Springate. Purposive sampling is used in this study to determine the sampling technique. The sample used in this study released 4 cigarette companies. Descriptive asalysis with quantitative models was used to analyze data in this research. Altman Z-Score, Zmijewski, and Springate in 2015-2019 PT. HM Sampoerna Tbk, PT. Gudang Garam Tbk, and PT. Wismilak Inti Makmur Tbk is related to safe, but it is needed a company that is estimated to be grey in the Altman Z-Score calculation in 2018, PT. Wismilak Inti Makmur Tbk. The Z-score is at the limit because the companie has a ratio with a lower value in market value of equity  to book value of liabilities   Abstrak – Penelitian ini memiliki bertujuan untuk menganalisis perbandingan kesulitan keuangan dalam perusahaan sun sektor rokok di Indonesia Stock Exchange periode 2015-2019 menggunakan tiga metode. Metode yang digunakan yaitu Altman Z-Score, Zmijewski, dan Springate. Purposive sampling digunakan dalam penelitian ini untuk menentukan teknik pengambilan sampel. Sampel yang digunakan berjumlah 4 perusahaan rokok. Analisis deskriptif dengan pendekatan kuantitatif digunakan sebagai teknik analisis data. Dalam penelitian ini menjelaskan financial distress yang dihitung menggunakan metode Altman Z-Score, Zmijewski , dan Springate pada tahun 2015-2019 PT. HM Sampoerna Tbk, PT. Gudang Garam Tbk, dan PT. Wismilak Inti Makmur Tbk mengalami dalam kondisi keuangan yang sehat, namun terdapat perusahaan yang diestimasi rawan kebangkrutan pada perhitungan Altman Z-Score pada  tahun 2018 yaitu PT. Wismilak Inti Makmur Tbk. hal ini dapat terjadi  karena nilai Z-Score PT. Wismilak Inti MakmurTbk  berada pada Z < 1,81 salah satu penyebabnya ialah rendahnya rasio market value of equity terhadap liabilities.

scholarly journals Analysis of Method Used to Predict Financial Distress Potential in Pulp and Paper Companies of Indonesia

2020 ◽  
Vol 1 (1) ◽  
pp. 57-69
Author(s):  
Fadrul Fadrul ◽  
Ridawati Ridawati
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Prediction Method ◽  
Pulp And Paper ◽  
Z Score ◽  
Accuracy Rate ◽  
Error Type ◽  
Paper Company ◽  
Score Method

This study aims to predict financial distress in pulp and paper companies in Indonesia. The data used are the financial statements of each pul and paper company listed on the Indonesia Stock Exchange in 2012-2017. Data analysis techniques used descriptive analysis with three methods of financial distress prediction, namely the Altman Z-Score, Springate, and Zmijewski methods. The results showed that the Zmijewski method is a prediction method with the highest accuracy rate of 100%, with an error type of 0%. The Altman Z-Score method has an accuracy rate of 28.6%, with an error type of 71.4%. While the Springate method has an accuracy rate of 14.3%, with an error type of 85.7%. Therefore an accurate prediction method to predict the potential for financial distress is the Zmijewski method.

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