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

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

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

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.

scholarly journals Does audit report information improve financial distress prediction over Altman's traditional Z ‐Score model?

2019 ◽  
Vol 31 (1) ◽  
pp. 65-97
Author(s):  
Nora Muñoz‐Izquierdo ◽  
Erkki K. Laitinen ◽  
María‐del‐Mar Camacho‐Miñano ◽  
David Pascual‐Ezama
Keyword(s):  
Financial Distress ◽  
Z Score ◽  
Audit Report ◽  
Financial Distress Prediction ◽  
Distress Prediction ◽  
Score Model

scholarly journals Stock Prices Predicted by Bankruptcy Condition?

2018 ◽  
Vol 9 (2) ◽  
pp. 105-114
Author(s):  
Irawati Junaeni
Keyword(s):  
Stock Prices ◽  
Financial Distress ◽  
Stock Price ◽  
Sampling Method ◽  
Stock Exchange ◽  
Bankruptcy Prediction ◽  
Z Score ◽  
Analysis Method ◽  
Simple Regression Analysis ◽  
Score Model

This research had two objectives. First, it determined the prediction of the method of Altman Z-Score whether it could classify banking positions, bankruptcy, or financial distress in the go-public bank in Indonesia Stock Exchange. Second, it was to know the influence of value position of Altman Z-Score on the stock price. The population was 84 banking company listed on the Indonesia Stock Exchange in 2010-2015. The sampling method was purposive sampling. Moreover, data analysis method used was a simple regression analysis. For data processing, it used software Eviews 8. The Z-Score calculations predict the potential bankruptcy of go-public bank in 2010-2015. All results show that Z-Score has the small score of 1,81. It can be said there is a potential bankruptcy. For t-test, it can be concluded that Z-Score has the positive and significant effect on the stock price. The ability of Z-Score values in explaining the stock price is 95,50% while the remaining 4,50% is influenced by other variables that are not analyzed in the research. With some weaknesses of Altman’s Z-Score model, this research has the implication for management bank. It improves the financial performance for the future to avoid opportunity bankruptcy prediction. The results show how the effect of bankruptcy on banking stock prices.

scholarly journals Analisis Z-Score Untuk Memprediksi Tingkat Kebangkrutan Perusahaan (Studi Pada Industri Farmasi di Bursa Efek Indonesia Periode 2012-2014)

2020 ◽  
Vol 1 (1) ◽  
Author(s):  
Himmiyatul Amanah Jiwa juwita
Keyword(s):  
Discriminant Analysis ◽  
Pharmaceutical Industry ◽  
Pharmaceutical Company ◽  
Stock Exchange ◽  
Bankruptcy Prediction ◽  
Pharmaceutical Companies ◽  
Z Score ◽  
Corporate Bankruptcy ◽  
Study Population ◽  
Score Model

This study aims to determine the level of corporate bankruptcy using model analysis Altman Z-Score on pharmaceutical companies in Indonesia Stock Exchange (IDX) 2012-2014. The study population was all of the Pharmaceutical Industry with a sample of eight pharmaceuticalscompanies in the Indonesia Stock Exchange (IDX) in accordance with predetermined criteria. The results of this study indicate that the Altman Z-Score model can be implemented to detect the possibility of bankruptcy in the pharmaceutical company in Indonesia Stock Exchange (IDX). Altman Z-Score model and discriminant analysis do not have the same results in predicting bankruptcy in eight pharmaceutical companies because there is a miss classification in one company out of eight companies. The results of the Z-Score using discriminant analysis is able to classify a pharmaceutical company in two groups, that are healthy and gristle to bankruptcy.Keywords: pharmaceutical company, Bankruptcy Prediction, Altman Z-score model

scholarly journals BANKRUPTCY PREDICTION ANALYSIS USING THE ZMIJEWSKI MODEL (X-SCORE) AND THE ALTMAN MODEL (Z-SCORE)

2020 ◽  
Vol 1 (5) ◽  
pp. 794-806
Author(s):  
Viciwati Viciwati
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Bankruptcy Prediction ◽  
Z Score ◽  
Accuracy Rate ◽  
Financial Reports ◽  
Normality Test ◽  
The Difference ◽  
Score Model

This study aims to identify and analyze the accurate models of Financial Distress in retail companies listed on the Indonesian Stock Exchange in 2014-2018 using the Zmijewski (X-Score) and Altman (Z-Score) Model. The sample used is 70. This study uses secondary data from the 2014-2018 annual financial reports. This study tested the hypothesis using the normality test and the Kruskal Wallis test or the difference test using SPSS version 26. The results of this study indicate that the Zmijewski (X-Score) model is the model that has the highest accuracy rate in predicting bankruptcy with an accuracy rate of 90%.

scholarly journals Financial Distress Prediction of Airlines Companies

2021 ◽  
Vol 5 (2) ◽  
pp. 3-15
Author(s):  
Afiruddin Tapa ◽  
Nurfarah Lyana Ahmad Razif
Keyword(s):  
Middle East ◽  
Financial Distress ◽  
Descriptive Analysis ◽  
Z Score ◽  
Financial Distress Prediction ◽  
Financial Failure ◽  
Significant Difference ◽  
Distress Prediction ◽  
Score Model ◽  
Significant Model

The purpose of this study is to compare three financial failure models: the Altman Z-Score Model, the Springate Model, and the Zmijewski Model, in terms of predicting financial difficulty among airlines in Asia and the Middle East. Based on the results of this study, it is proven by the result of the analysis done for Airlines in Asia and the Middle East that all the three models have predicted that these companies are in financial distress. But, the Altman Z-Score model is the most significant model to forecast financial distress. Although the models employ different ratios in their analyses, this study demonstrates that there is a substantial difference in the analysis of these three models. Another independent T-test demonstrates that the Altman Z-Score Model and the Zmijewski Model, as well as the Springate Model and the Zmijewski Model, have substantial differences. The study employed a descriptive and comparative analysis method, and this model was created to compare the independent variables. The Altman Z-Score model is the most significant model for predicting the financial failure of enterprises, according to the descriptive analysis in this study. While the comparison findings show a large difference between the Altman Z-Score Model and the Zmijewski Model, there is also a significant difference between the Springate Model and the Zmijewski Model. The Altman Z-Score Model and the Springate Model, on the other hand, imply that there is no significant model.

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