ANALYSIS ON THE PREDICTION OF BANKRUPTCY OF CIGARETTE COMPANIES LISTED IN THE INDONESIA STOCK EXCHANGE USING ALTMAN (Z-SCORE) MODEL AND ZMIJEWSKI (X-SCORE) MODEL

This paper aims to investigate the Validity of Altman z-score model to predict financial failure in insurance companies listed on Amman Stock Exchange (ASE) over the period 2011-2016. To achieve the goal of the study, the study depended on the different statistics analytical method and Multiple Linear Regression through doing the statistical analysis of the independent variables on the dependent variable related to the subject of the study through the (E-views) program in order to cover the analytical part of the study, in addition to the descriptive method through relying on books, periodicals, previous studies and financial reports of the insurance companies of the study’ sample, whether the direct or the indirect ones, to cover the theoretical part. The result of the study finds a high predictive power for Z-score model. Moreover, the findings reveal that Z-Score model could be valuable instrumental indicators for many users of financial statement such as financial managers, auditors, lenders, investors, to make right decisions in the face of financial failure.

Download Full-text

TESTING BHANDARI Z-SCORE MODEL BANKRUPTCY PREDICTION USING CASH FLOW

JOURNAL OF APPLIED MANAGERIAL ACCOUNTING ◽

10.30871/jama.v2i1.728 ◽

2018 ◽

Vol 2 (1) ◽

pp. 121-128

Author(s):

Barcha Handal Sakti ◽

Ely Kartikaningdyah

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

Predictor Variable ◽

Bankruptcy Prediction ◽

Z Score ◽

Discriminating Power ◽

Significant Difference ◽

Operating Cash Flow ◽

Score Model

This research aimed to know whether the predictor variables on Bhandari’s z-score model having discriminating power which in each of the group has significant difference. Sample which was being used to assist was the manufacture company that consisted of healthy company and the unhealthy company enrolled in Indonesia stock exchange in the period of 2012-2014. Sample collecting method used purposive sampling and cross section was the data used in this research. This research was conducted by using Multivariat Discriminant Analysis (MDA). The result of this study showed predictor variable that gave discriminating power which stood of quality of earning (EAQ), operating cash flow divided by current liabilities (OCFCL), operating cash flow margin (OCFM), and operating cash flow return on total assets (OCFA) in distinguishing the healthy and unhealthy company significantly.

Download Full-text

Analysis of bankruptcy issues at manufacturing companies, sub-sectors of cosmetics and houseappliances registered in Indonesia Stock Exchange (IDX) year 2015-2017 using Altman Z-score

The Accounting Journal of Binaniaga ◽

10.33062/ajb.v4i01.357 ◽

2019 ◽

Vol 4 (01) ◽

pp. 27

Author(s):

Indar Khaerunnisa ◽

Nur Anisa Rahayu

Keyword(s):

Financial Performance ◽

Financial Distress ◽

Stock Exchange ◽

Manufacturing Companies ◽

Z Score ◽

Marketing Performance ◽

Grey Area ◽

Manufacturing Company ◽

Score Model

This research aims to figure out the level of companies bankruptcy by applying Altman Z-Score at the manufacturing companies registered in the Indonesia Stocks Exchange. The result of the research has indicated that ZScore model is applicable to detect the company’s potential bankruptcy issues, especially manufacturing company subsectors of cosmetics and houseappliances. Altman Z-Score model has classified the companies into three categories; safe, grey area and distress. Based on the result of the research, for the companies which are in the grey area category are suggested to improve their financial performance and to use the benefit of all the assets properly to get the revenue as much as possible. However, for the companies which are in the safe category are suggested to increase their performance, especially marketing performance so that they will receive bigger amount of the revenue, nevertheless, the potential of financial distress can be minimized accordingly. Keywords: manufacturing company, financial distress, Altman Z-Score.

Download Full-text

Pengaruh Prediksi Kebangkrutan Model Altman Z-Score, Reputasi Auditor dan Opinion Shopping terhadap Opini Audit Going Concern

Owner ◽

10.33395/owner.v4i1.174 ◽

2020 ◽

Vol 4 (1) ◽

pp. 343-355

Author(s):

Muhammad Yunus ◽

Calen Calen ◽

Sarida Sirait

Keyword(s):

Stock Exchange ◽

Sampling Technique ◽

Bankruptcy Prediction ◽

Manufacturing Companies ◽

Z Score ◽

Audit Opinion ◽

Going Concern ◽

Opinion Shopping ◽

Score Model ◽

Auditor Reputation

This study aims to determine the effect of the bankruptcy prediction of the Altman z-score model, auditor reputation and opinion shopping on going concern audit opinion in manufacturing companies listed on the Indonesia Stock Exchange in 2015-2019. This research is a causal associative research with a quantitative approach. The sample in this study were 25 manufacturing companies listed on the Indonesia Stock Exchange which were determined using purposive sampling technique. Observations in this study were carried out throughout the period 2015 to 2019 so that the number of observations was 125 data. The type of data used in this study is secondary data. While the data analysis method used in this research is panel data regression analysis with statistical data processing software, namely STATA. Based on the results obtained in this study, it can be seen that the prediction of bankruptcy based on the Altman z-score model has no significant effect on going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange. Auditor reputation is proven to have a negative and significant effect on going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange. And opinion shopping is also proven to have a negative and significant effect on going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange.

Download Full-text

BANKRUPTCY PREDICTION OF THE COMPANY USING ALTMAN Z–SCORE METHOD FOR THE CONVENTIONAL BANKS REGISTERED IN THE INDONESIA STOCKS EXCHANGE (BEI)

The Management Journal of Binaniaga ◽

10.33062/mjb.v2i02.132 ◽

2017 ◽

Vol 2 (02) ◽

pp. 11

Author(s):

Irwansyah .

Keyword(s):

Stock Exchange ◽

Secondary Data ◽

Bankruptcy Prediction ◽

Z Score ◽

Gray Area ◽

Analysis Technique ◽

Score Analysis ◽

Score Method ◽

Score Model ◽

Conventional Banks

This study was conducted to prove the accuracy of bankruptcy prediction of Altman Z-Score model on conventional banks listed on the Indonesia Stock Exchange. The data used in this study is secondary data obtained from the annual financial statements of conventional banks during the period of 2013-2016 mentioned on the official website of the Indonesia Stock Exchange. The data analysis technique used is bankruptcy prediction of Altman Z-Score model, using five variables representing liquidity ratios X1, profitability ratios X2 and X3, and activity ratios X4 and X5. The formula Z-score = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + X5. When Z-Score criteria is Z > 2.90 it is categorized as a healthy company. Z-Score between 1.23 to 2.90 is categorized as a company in area. While Z-Score Z < 1.23 is categorized as a potential bankrupt company. Based on the results of the research, Z-Score analysis that has been done in the period of 2013-2016 indicating that most conventional banks are predicted bankrupt. The lowest score of the Z-Score is 1.23. Only one Bank Jtrust Indonesia Tbk (BCIC bank code) is in a healthy category. Bank Mandiri (Persero) Tbk with BMRI bank code, has been increasing from the prediction of bankruptcy category to the prediction of gray area category.Keywords: Altman Z-Score, Conventional Banks Listed on BEI 2013-2016, Prediction of Bankruptcy.

Download Full-text

Impak Struktur Modal, Struktur Kepemilikkan dan Karakteristik Perusahaan Terhadap Financial Distress dan Financial Health Perusahaan

Jurnal Ekonomi dan Bisnis Dharma Andalas ◽

10.47233/jebd.v23i1.199 ◽

2021 ◽

Vol 23 (1) ◽

pp. 135-149

Author(s):

Ratnawati Raflis ◽

Enny Arita

Keyword(s):

Logistic Regression ◽

Capital Structure ◽

Financial Performance ◽

Ownership Structure ◽

Financial Distress ◽

Stock Exchange ◽

Financial Health ◽

Z Score ◽

Score Model ◽

The Impact

Corona Virus Pandemic affected the world economy, including Indonesia. Many companies are out of business due to this pandemic.With the background of the conditions mentioned above, the researchers are interested in examining more deeply the variables that determine the level of financial distress and at the same time the financial health of the company. Furthermore, the variables that are used as independent variables and are thought to affect the company's financial performance are capital structure, ownership structure and company characteristics. In assessing financial performance, the Altman Z Score model is used and then to see the impact of the variables that are thought to affect the company's financial performance.The research model used is the Logistic Regression equation.Population and sample are taken from financial data of companies listed on the Indonesia Stock Exchange. Data is taken manually on the website: www.idx.co.id. And the period in this study was taken from 2015-2019. The test results prove that the Capital Structure and Ownership Structure are factors that have a significant influence on the Company's Financial Distress and Financial Health. ABSTRAK Pandemi Virus Corona berimbas pada perekonomian dunia tidak terkecuali pada perekonomian di Indonesia. Banyak perusahaan yang gulung tikar akibat pandemik ini. Dengan berlatar belakang kondisi tersebut diatas maka peneliti tertarik untuk mengkaji lebih dalam menentukkan variabel yang sangat menentukan tingkat Financial Distress dan sekaligus financial health (Kinerja Keuangan) perusahaan. Selanjutnya variabel yang di jadikan variabel independen dan di duga berpengaruh terhadap kinerja keuangan perusahaan adalah struktur modal, struktur kepemilikkan dan Kharakteristik Perusahaan. Dalam menilai kinerja keuangan maka digunakan model Altman Z Score dan selanjutnya untuk melihat dampak variabel yang di duga berpengaruh terhadap kinerja keuangan perusahaan. Model penelitian yang di pakai adalah persamaan Logistic Regression. Model ini kemudian akan di lakukan uji T , Uji F dan Uji Asumsi Klasik sebelum di gunakan dalam melihat signifikasi variabel independen terhadap variabel dependen. Populasi dan sampel diambil dari data keuangan perusahaan yang terdaftar di Bursa Efek Indonesia. Data diambil secara manual di website: www.idx.co.id. Periode pada penelitian ini diambilkan data dari tahun 2015-2019. Hasil Pengujian membuktikan bahwa Struktur Modal dan Struktur Kepemilikkan adalah faktor yang sangat berpengaruh signifikan terhadap Financial Distress dan Financial Health Perusahaan.

Download Full-text

Company Bankruptcy Prediction Coal Mining Sector Listed on the Indonesia Stock Exchange and Its Impact on Stock Prices

International Journal of Science and Society ◽

10.54783/ijsoc.v3i3.356 ◽

2021 ◽

Vol 3 (3) ◽

pp. 95-106

Author(s):

Erik Priambodo ◽

Augustina Kurniasih

Keyword(s):

Coal Mining ◽

Stock Prices ◽

Stock Exchange ◽

Bankruptcy Prediction ◽

Z Score ◽

Mining Sector ◽

Mining Companies ◽

Panel Data Regression ◽

Data Regression ◽

Score Model

This study aims to prove whether coal mining sector companies have the potential to go bankrupt if measured using the Altman Z-Score model. The study also analyzed the effect of the components of financial ratios in the Altman Z-Score model on stock prices. The research sample is 17 coal mining companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The results of the calculation of the Z-Score value show that several coal mining companies have the potential to go bankrupt. Using the panel data regression approach, it was found that the Z-Score value had a significant effect on stock prices. Partially, the EB/TA ratio has a significant effect on stock prices. The ratios of WC/TA, RE/TA, and MVE/BVL have no significant effect on stock prices.

Download Full-text

ANALISIS PENILAIAN FINANCIAL DISTRESS MENGGUNAKAN MODEL ALTMAN (Z-SCORE) PADA PERUSAHAAN FARMASI YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2015

JURNAL AKUNTANSI EKONOMI dan MANAJEMEN BISNIS ◽

10.30871/jaemb.v5i1.275 ◽

2017 ◽

Vol 5 (1) ◽

pp. 55

Author(s):

Sri Yati ◽

Katarina Intan Afni Patunrui

Keyword(s):

Financial Distress ◽

Sampling Method ◽

Stock Exchange ◽

Secondary Data ◽

Pharmaceutical Companies ◽

Z Score ◽

Financial Reports ◽

Book Value ◽

Total Debt ◽

Score Model

This study aims to observe the financial distress assessment for pharmaceutical companies listed on the Indonesia Stock Exchange using the Altman Z-Score model. The sample is selected using purposive sampling method. Ten pharmaceutical companies were selected with the criteria listed in the Indonesia Stock Exchange (BEI) and regularly published financial reports in 2013 until 2015. Secondary data was derived from www.idx.co.id site. The results indicate that the Altman Z-Score model can be implemented in detecting the possibility of financial distress in the pharmaceutical company. Working capital to total assets and book value equity to book value of total debt are two determinant variables which is determining the decrease in Z-score value in this research. One from ten companies have the lowest value of the Z-Score and experiencing financial distress. For two years, the company is in distress zones but in the third year, the company is managed to increase the value of the company and included in the gray zones. This company must continue to strive in order to stabilize the company's financial and asset utilization to obtain maximum profit, and until it was declared as a healthy company.

Download Full-text

Analisis Potensi Kebangkrutan: Perbandingan Model Altman dengan Zavgren

PERSPEKTIF ◽

10.31289/perspektif.v9i2.3946 ◽

2020 ◽

Vol 9 (2) ◽

pp. 447-452

Author(s):

Wardayani Wardayani ◽

Azhar Maksum

Keyword(s):

Stock Exchange ◽

Secondary Data ◽

Identification Problem ◽

Bankruptcy Prediction ◽

Logit Analysis ◽

Z Score ◽

Gray Area ◽

Financial Difficulties ◽

Score Model ◽

Analysis Models

This study is aimed to compare two methods to determine the potential for bankruptcy of the company. The method used is the Altman (Z Score) and Zavgren (Logit Analysis) models. The Z Score model is a method to predict the financial difficulties, where the score value on the Altman Z Score classifies whether a company being bankrupt or not. Zavgren developed bankruptcy prediction model with Logit Analysis which divide bankruptcy classifications. The identification problem in this research are the decline in profits occurred from the end of 2016 until 2018, and the mismatch of the increase in profits to the increase the number of assets in the Cosmetics Company, through the use of secondary data from the Indonesia Stock Exchange of companies with code MRAT, KINO, TCID, dan MBTO. Thus, the financial state of cosmetics companies listed on the Indonesia Stock Exchange (BEI) during the 2016 to2018, according to the Altman Z Score model can be categorized into 2 criteria, they are: Gray Area; MBTO and Sound Area: MRAT, KINO and TCID. Meanwhile, based on the Zavgren model, MRAT, KINO, TCID and MBTO were declared as Sound.

Download Full-text

FINANCIAL DISTRESS PREDICTION AND SEEING THE INFLUENCE OF THE ALTMAN RATIO ON COMPANY FINANCIAL DISTRESS

Journal of Business Economics ◽

10.35760/eb.2018.v23i3.1832 ◽

2018 ◽

Vol 23 (3) ◽

pp. 236-243

Author(s):

Hadhi Dharmaputra Juliyan ◽

Bertilia Lina Kusrina

Keyword(s):

Financial Distress ◽

Stock Exchange ◽

Bankruptcy Prediction ◽

Z Score ◽

Large Role ◽

Corporate Bankruptcy ◽

Mining Companies ◽

Financial Distress Prediction ◽

Distress Prediction ◽

Score Model

This research aims to determine the level of the bankruptcy of the company and to see if the Altman ratio can predict the condition of corporate bankruptcy in mining companies on the Indonesia Stock Exchange because mining companies have a large role in the Indonesian economy. This study uses the Altman Z-Score model analysis to see how much the company's bankruptcy prediction and uses logistic regression to see how much the influence of the Altman ratio in predicting corporate bankruptcy. Keywords: financial distress, the Altman z–score, bankruptcy prediction

Download Full-text