scholarly journals Selection of Early Warning Indicator to Identify Distress in The Corporate Sector: Crisis Prevention Strengthening Efforts

2018 ◽  
Vol 20 (3) ◽  
pp. 343-374 ◽  
Author(s):  
Arlyana Abubakar ◽  
Rieska Indah Astuti ◽  
Rini Oktapiani
Keyword(s):  
Early Warning ◽  
Financial Distress ◽  
Statistical Error ◽  
Financial Reports ◽  
Early Warning Indicator ◽  
Financial Condition ◽  
Crisis Prevention ◽  
Equity Ratio ◽  
The Stability ◽  
Selection Of

This study aims to develop an Early Warning Indicator (EWI) that can provideearly signals in the presence of pressure on the financial condition of the corporatesector. Thus, efforts to prevent deeper deterioration can be anticipated earlier inorder to maintain the stability of the financial system. In the first stage, based on thecompany’s financial reports, the probable indicators are grouped into four categoriesi.e. liquidity indicator, solvency indicator, profitability indicator and activity indicator.The indicators, selected as EWI, are the indicators that can predict the occurrence ofcorporate distress events, in the Q1 of 2009, with the minimum statistical error. Theresults of the statistical evaluation showed that in terms of aggregate, the indicators ofDebt to Equity Ratio (DER), Current Ratio (CR), Quick Ratio (QR), Debt to Asset Ratio(DAR), Solvability Ratio (SR) and Debt Service Ratio (DSR) signal within a year beforea distress event occurs in the Q1 of 2009. Thus, these indicators can be considered asEWI in the presence of corporate financial distress.

scholarly journals The Effect of Financial Performance and Financial Distress Indicators to the Stock Price of Bank Rakyat Indonesia

2018 ◽  
Vol 2 (1) ◽  
pp. 1-15
Author(s):  
Diin Fitri Ande ◽  
Harsono Yoewono
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Stock Price ◽  
Time Lag ◽  
Bankruptcy Prediction ◽  
Third Party ◽  
Financial Reports ◽  
Financial Report ◽  
Equity Ratio ◽  
The Common

The bank’s financial report is the only lead for the public c to review, evaluate, and assess the soundness of a bank. By tinkering the available figures within the monthly financial reports, we have measured 52 variables comprised of the common indicators to calculate the effects of financial performance of the bank, its financial distress, to its stock price in the market. The common indicators used are the ratios of liquidity, rentability, and solvability. The bankruptcy prediction and financial distress indicators were considered to part ofthe solvability ratios. The data observed and collected was between January 2002 to 18 July 2017. The time lag and IPO as of 10 November 2003 reduced the eligibility of monthly financial reports, leaving the data usable for the period of November 2003 to April 2017. As 10 variables were excluded by the system, only 4 of42 variables were found to be significantly affecting the stock price variable. The 4 independent variables are market capitalization, the ratio of placement in BI to the third-party fund, debt to equity ratio, and debtto asset ratio.

scholarly journals The Application of Altman’s Z-Score Model in Predicting Bankruptcy: Evidence from the Trading Sector in Sri Lanka

2015 ◽  
Vol 10 (12) ◽  
pp. 269 ◽  
Author(s):  
Aloy Niresh J. ◽  
Pratheepan T.
Keyword(s):  
Sri Lanka ◽  
Early Warning ◽  
Financial Distress ◽  
Safe Zone ◽  
Grey Zone ◽  
Z Score ◽  
Financial Reports ◽  
Financial Position ◽  
Score Model

Prediction of bankruptcy is crucial as the early warning may change entire complications and may avoid the high cost that is associated with distress. The main purpose of this study is to examine the likelihood of bankruptcy of the firms belonging to the Trading Sector in Sri Lanka. The research used data from the financial reports of seven trading companies for a period of the last five years from 2010 to 2014. Altman’s original (1968) bankruptcy model has been applied in order to classify the companies in various levels of financial position namely safe, grey and distress. Findings reveal that 71% of the companies belonging to the Trading Sector were in financial distress and the rest of whole 29% were in the grey zone. The fact that none of the companies lie under the safe zone highlights that as a whole the sector is in a menace.

scholarly journals FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP HARGA SAHAM SYARIAH PT. WIJAYA KARYA, TBK., DAN PT. ANEKA TAMBANG, TBK.

2021 ◽  
Vol 1 (2) ◽  
pp. 36-44
Author(s):  
Zahida I’tisoma Billah ◽  
Nuri Fara Daisil Jinnani
Keyword(s):  
Stock Price ◽  
Sampling Method ◽  
Secondary Data ◽  
Financial Statements ◽  
Return On Assets ◽  
Financial Reports ◽  
Return On Equity ◽  
Analysis Technique ◽  
Equity Ratio ◽  
Selection Of

The stock price always changes. Investors can find out the factors that influence it with a fundamental analysis of the company's financial statements. This study aims to determine whether the Return On Assets, Return On Equity, and Debt to Equity Ratio affect the stock price fluctuation of PT. Wijaya Karya, Tbk. and PT. Aneka Tambang, Tbk. in 2016-2018. The research method used is descriptive quantitative, then this study uses the population and samples in the selection of research objects. The population consisted of 30 companies registered in JII, the sampling method was purposive sampling and obtained PT. Wijaya Karya, Tbk. and PT. Aneka Tambang, Tbk. The research data is secondary data obtained from the annual financial reports of the two research samples. The data analysis technique used is multiple regression. The results of the study concluded that both simultaneously and partially ROA, ROE, and DER did not have a significant effect on the stock price of PT. Wijaya Karya, Tbk. and PT. Aneka Tambang, Tbk. 2016-2018 period.

scholarly journals ANALISIS POTENSI KESULITAN KEUANGAN PERUSAHAAN MANUFAKTUR MAKANAN DAN MINUMAN DI BURSA EFEK JAKARTA

2008 ◽  
Vol 4 (4) ◽  
Author(s):  
I Made Surya Nurraja
Keyword(s):  
Discriminant Analysis ◽  
Early Warning ◽  
Financial Distress ◽  
Early Warning System ◽  
Significant Contribution ◽  
Warning System ◽  
Preventive Action ◽  
Multiple Discriminant Analysis ◽  
Return On Equity ◽  
Financial Condition

Many companies registred at the Bursa Efek Jakarta technically can’t be maintained anymore. This fact needs to be known earlier by who has concern for it. Therefore, the study produce a model for preventive action as an early warning system which expect can be used together in order to anticipate the financial condition of the companies are getting worse and finally become bankrupt.Using eleven financial rations and Multiple Discriminant Analysis, this study found that there are six financial rations have different between companies have significant contribution (Total Liabilities to Total Assets and Return on Equity)Keywords : Financial rations, Financial distress, Multiple Discriminant Analysis.

scholarly journals FINANCIAL DISTRESS ANALYSIS USING THE ZMIJEWSKI METHOD

2020 ◽  
Vol 6 (1) ◽  
pp. 69-78
Author(s):  
Edon Ramdani
Keyword(s):  
Financial Reporting ◽  
Financial Distress ◽  
Stock Exchange ◽  
Good Condition ◽  
Financial Statements ◽  
Financial Reports ◽  
Financial Condition

This study aimed to determine the level of financial distress of the company using the Zmijewski method and conducted on three companies listed on the Indonesia Stock Exchange, namely PT Bakrieland Development Tbk, PT Central Omega Resources Tbk and PT Buana Lintas Lautan Tbk who received warnings from the IDX due to the delay in submitting financial reports. The results: the three companies are in good condition, with no financial distress. PT Bakrieland Development Tbk and PT Buana Lintas Lautan Tbk showed an increase in performance during the year 2016-2018 but PT Central Omega Resources Tbk decreased during the year 2016-2018. Companies are required to maintain the ability to meet their obligations and reduce the level of obligation so that it can be maintained does not lead to financial distress. Delays in the delivery of financial statements must be reduced so as not to harm investors. Analysis of financial distress needs to be continued to determine the company's financial condition. Contrast to previous studies that analyzed financial distress by comparing testing models and testing on companies listed on the IDX, this study focused on testing companies that received IDX warnings due to late financial reporting.

scholarly journals ANALISIS POTENSI FINANCIAL DISTRESS DENGAN MENGGUNAKAN ALTMAN Z SCORE PADA PERUSAHAN PENERBANGAN (DAMPAK PANDEMI COVID-19 DENGAN PENUTUPAN OBJEK WISATA DAN PSBB)

2021 ◽  
Vol 6 (1) ◽  
pp. 52
Author(s):  
Muhammad Rizal Affandi ◽  
Rita Meutia
Keyword(s):  
Data Analysis ◽  
Financial Distress ◽  
Stock Exchange ◽  
Z Score ◽  
Financial Reports ◽  
Financial Condition ◽  
Data Analysis Technique ◽  
Analysis Technique

This study aims to identify and analyze the potential for financial distress in airlines at Indonesia. The object of this research is the airlines listed on the Indonesia Stock Exchange (BEI), namely PT. Garuda Indonesia Tbk and PT. AirAsia Indonesia Tbk. The data used is in the form of financial reports that have been published on the Indonesia Stock Exchange through the website (www.idx.co.id) in the first quarter of 2020 – third quarter of 2020. The data analysis technique uses the Altman Z Score in predicting potential financial distress. The results of the study found that PT Garuda Indonesia Tbk and PT AirAsia Indonesia Tbk were in financial distress or in an unhealthy financial condition, and were classified as companies that have the potential to experience bankruptcy. Research shows that PT AirAsia Indonesia Tbk has a higher potential for bankruptcy than PT Garuda Indonesia Tbk.

scholarly journals The Influence of Liquidity, Leverage, Company Size and Profitability on Financial Distress

2021 ◽  
pp. 11-17
Author(s):  
Andi Runis ◽  
Dedy Samsul Arifin ◽  
Arifuddin Masud ◽  
Ummy Kalsum
Keyword(s):  
Financial Distress ◽  
Panel Data Analysis ◽  
Secondary Data ◽  
Sampling Technique ◽  
Annual Reports ◽  
Company Size ◽  
Return On Assets ◽  
Current Ratio ◽  
Financial Reports ◽  
Equity Ratio

This study aims to empirically examine the factors that influence Financial Distress in Property and Real Estate Companies. This study was tested with four independent variables, namely Liquidity (Current Ratio), Leverage (Debt Equity Ratio), Firm Size (ln of Total Assets), and Profitability (Return on Assets) using purposive sampling technique the authors chose seventeen companies as samples. This study uses panel data analysis obtained from financial reports and Annual Reports for 5 years. This study uses secondary data with the help of the Eviews 9 application. The results found that the Leverage Variable (Debt Equity Ratio) has a positive and significant influence on Financial Distress while Liquidity (Current Ratio), Company Size (ln of Total Assets), and Profitability Variables (Return). on Assets) has a negative and significant effect on Financial Distress.

scholarly journals ANALISIS RASIO KEUANGAN UNTUK MEMPREDIKSI KONDISI FINANCIAL DISTRESS PERUSAHAAN PULP DAN KERTAS YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2012-2017 DENGAN MODEL ALTMAN Z-SCORE

2020 ◽  
Vol 1 (1) ◽  
pp. 32-48
Author(s):  
Maya Sari ◽  
Haugesti Diana
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Pulp And Paper ◽  
Sales Growth ◽  
Return On Assets ◽  
Financial Condition ◽  
Financial Difficulties ◽  
Study Population ◽  
Equity Ratio

Identification conditions of financial difficulties is more important than bankruptcy, because companies will surely experience financial distress conditions first and then go bankrupt. This studi aims to examine the effect of the Current Ratio (QR), Quick Ratio (QR), Debt to Equity Ratio (DER), Return On Assets (ROA), and sales growth on the financial distress conditions of the pulp and paper subsector companies listed on the indonesi stock exchange from 2012 to 2017. This study use a quantitative approach. The study population included all pulp and paper subsector companies listed on the Indonesia stock exchange from 2012 to 2017, namely 8 companies. The sample was determined by purpose sampling technique. Data analysis method used is logistic regression analysis. The results of thr study showed that the best performance of the company with the lowest level of bankruptcy was PT. Kedawung Setia Industrial Tbk. From the results of testing multiple linear regression obtained Roa has a significant effect on the condition of financial distress. Whereas CR, QR, DER and Sales Growth do not effect the financial condition of the distress.

scholarly journals Rancang Bangun Sistem Prediksi Financial Distress Menggunakan Metode Altman Z-Score Modifikasi Pada Koperasi XYZ

2021 ◽  
Vol 6 (2) ◽  
pp. 72
Author(s):  
Ni Made Lissa Primadani ◽  
Ni Kadek Ariasih
Keyword(s):  
Financial Distress ◽  
Financial Ratios ◽  
Prediction System ◽  
Z Score ◽  
Financial Reports ◽  
For Profit ◽  
Financial Condition ◽  
Calculation Results ◽  
Score Method ◽  
Z Value

Financial distress is a condition in which a company begins to show signs of bankruptcy due to a decline in the company's financial condition. XYZ Cooperative is a savings and loan cooperative that needs to be aware of experiencing financial distress. What's more, the XYZ cooperative has experienced fluctuating asset conditions, even for profit in a certain month, it has experienced a negative or loss condition. Another problem that occurred is the covid-19 pandemic which made it difficult for people to carry out their obligations such as paying credit. This made the XYZ Cooperative's income experience a drastic decline from the previous year. Meanwhile, currently XYZ Cooperative does not have a prediction system or has never predicted financial distress in its company Based on these problems, an idea emerged to design and build a financial distress prediction system at the XYZ Cooperative using the Modified Altman Z-Score method. This model was chosen because the financial ratios used in prediction calculations are in accordance with the financial ratios of the XYZ Cooperative. The final result of this research is the construction of a prediction system using the Altman Z-Score Modification method on the desktop-based XYZ Cooperative. From the 3 years of financial reports that were tested from 2017 to 2019, the prediction results were at a safe point, namely the Z value above 2.6. The calculation results for 2017 is 8.19, 2018 is 8.11 and 2019 is 7.82. However, the predicted Z value from 2017 to 2019 has decreased, although it is not significant. The accuracy calculation obtained compares the prediction results with the real situation of the cooperative using the average comparison formula and the typer error II formula. Where from the 3 sample data tested, the results of the sample received were 3 with a data error of 0.

DETERMINAN KONSERVATISME AKUNTANSI PADA INDUSTRI DASAR DAN KIMIA PERIODE 2012 - 2014

2017 ◽  
Vol 1 (1) ◽  
pp. 111
Author(s):  
Mohamad Zulman Hakim
Keyword(s):  
Financial Distress ◽  
Growth Opportunities ◽  
Purposive Sampling ◽  
Equity Ratio

Penelitian ini bertujuan untuk membuktikan secara empiris faktor-faktor yang berpengaruh terhadap Konservatisme Akuntansi pada industri dasar dan kimia yang terdaftar di Bursa Efek Indonesia periode 2012 – 2014. Variabel independen dalam penelitian ini menggunakan Growth Opportunities, Debt to Equity Ratio, Finance Distress dan Variabel independen dalam penelitian ini menggunakan Konservatisme Akuntansi.Populasi dalam penelitian ini menggunakan industri dasar dan kimia yang terdaftar di Bursa Efek Indonesia periode 2012 – 2014 dan menggunakan metode purposive sampling dengan sampel 17 perusahaan serta menggunakan metode analisis regresi linear berganda.Hasil penelitian ini menunjukan bahwa secara parsial Growth Opportunities berpengaruh signifikan terhadap konservatisme akuntansi, Debt to Equity Ratio berpengaruh tidak signifikan terhadap konservatisme akuntansi, Financial Distress berpengaruh signifikan terhadap Konservatisme Akuntansi dan secara simultan Growth Opportunities, Debt to Equity Ratio, Finance Distress berpengaruh signifikan terhadap Konservatisme Akuntansi.Kata Kunci: Growth Opportunities, Debt to Equity Ratio,Finance Distress dan Konservatisme Akuntansi

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