Does Financial Distress Using Altman Z-Score Capital Affect Stock Price?

2020 ◽  
Vol 24 (02) ◽  
pp. 3127-3134
Author(s):  
Sakina Ichsani ◽  
Vincentia Wahju Widajatun ◽  
Dede Hertina
Keyword(s):  
Financial Distress ◽  
Stock Price ◽  
Z Score

Peran financial distress Altman memediasi kinerja keuangan terhadap harga saham pada BUMN di BEI

2020 ◽  
Vol 2 (1) ◽  
pp. 27-40
Author(s):  
Mia Laksmiwati ◽  
◽  
Sugeng Priyanto ◽  
Keyword(s):  
Financial Performance ◽  
Stock Prices ◽  
Financial Distress ◽  
Stock Price ◽  
Warning System ◽  
Secondary Data ◽  
Z Score ◽  
Financial Reports ◽  
Score Method ◽  
Program Sample

Purpose: Testing the effect of financial performance consisting of CR, DER, ROA, TATO on stock prices with Financial Distress as the mediating variable. Research methodology: The data are secondary data in the form of financial reports. This research method uses Path Analysis, and to analyze the data using the SPSS version 25 program. Sample of 16 companies listed on the BEI in 2014-2018. Results: CR, ROA affect FD while DER, TATO do not affect FD. Only TATO has a direct effect on stock prices. FD with the Altman Z score method only indicates the DER. Limitations: The historical data used is limited, 5-year time series and the variables: six variables and Altman Z Score method. Contribution: Non-bank SOEs pay attention to CR, DER and ROA that have not influenced share prices and maintain the performance of TATO. SOE must conduct FD analysis, which is an early warning system, solutions can be found immediately if predicted will experience financial difficulties in the future. Keywords: Financial performance, Financial distress, Stock price

Financial Distress and Stock Market Failures: Lessons from Indian Realty Sector

2018 ◽  
Vol 22 (1) ◽  
pp. 50-60
Author(s):  
T.G. Saji
Keyword(s):  
Stock Market ◽  
Financial Distress ◽  
Stock Price ◽  
Investment Decisions ◽  
Sufficient Information ◽  
Market Failures ◽  
Z Score ◽  
Stock Market Performance ◽  
Performance Dimensions ◽  
Score Model

Investors prefer to be safe at market places. Hence, assessing potential financial distress and predicting stock failures are much crucial for their investment decisions. This article highlights the analytic values of financial ratios and discusses the uses of Altman Z-score model in assessing the financial distress and predicting stock market performance of Indian realty sector. The panel regression procedure administered on the 10-year firm-specific data for the period of 2006–2015 demonstrates how the performance dimensions embedded into the distress prediction score forecast the future stock price behaviour. The findings of the study suggest that the analytic value inherent in Altman Z-score model has utility in both distress classifications and stock market predictions in Indian context. To be precise, the current Z-scores of realty firms carry sufficient information content that forewarns their stock market failures 2–5 years in advance. The results may provide a valuable guide to the investors of Indian realty firms in analysing financial failures and thereby can substantiate their investment decisions.

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.

Financial Statement Ratio Analysis to Predict Bankruptcy nn Company Registered in BEI - Jakarta (Altman Z-Score Method and Zmijewski)

2020 ◽  
Vol 3 (3) ◽  
pp. 122
Author(s):  
Andi Silvan
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Good Condition ◽  
Financial Statement ◽  
Depth Information ◽  
Z Score ◽  
Industrial Manufacturing ◽  
Financial Difficulties ◽  
A Value ◽  
Score Method

AbstractThis study takes the topic of predicting corporate bankruptcies. This research dqlam use traditional methods Altman Z-Score and Zmijewski. The purpose of this study was to obtain in-depth information about predicting bankruptcy of companies that are not necessarily directly to bankruptcy, but there is financial distress.Based on the results of research conducted on the four (4) non industrial manufacturing company listed on the Indonesia Stock Exchange (BEI). Obtaining the value z-score represents the average company are in good condition, which means no financial distress. Acquisition value of x-score has a value of less than 0 (zero) which means that the company is in good condition and is predicted not experiencing financial difficulties. This study led to the conclusion that the Altman Z-Score and Zmijewski method can be used to predict corporate bankruptcy. Keywords: Financial Ratios, Bankruptcy, Company.

ANALISIS INDEX ALTMAN Z-SCORE DALAM MEMPREDIKSI KONDISI FINANCIAL DISTRESS (Studi Empiris Perusahaan Properti dan Real Estate Sub Sektor Perhotelan Tahun 2012-2017)

Kinerja ◽  
2018 ◽  
Vol 1 (01) ◽  
pp. 48-57
Author(s):  
Maryam Dunggio ◽  
Nur Aufa Mufidah
Keyword(s):  
Real Estate ◽  
Financial Distress ◽  
Z Score ◽  
Grey Area

Penelitian ini bertujuan untuk menganalisis Index Altman dalam memprediksi kondisi financialdistress pada perusahaan properti dan real estate tahun 2102-2017. Metode penelitian yangdigunakan adalah Altman Z-score. Teknik pengumpulan data yang dilakukan secara sekunderyaitu data yang diperoleh dari laporan keuangan tahunan yang dipublikasikan oleh setiapperusahaan. Hasil yang diperoleh dalam penelitian ini menunjukkan bahwa pada tahun 2012terdapat 2 perusahaan yang mengalami zona aman dan 8 perusahaan mengalami financial distress,tahun 2013 terdapat 2 perusahaan mengalami zona aman dan 1 perusahaan grey area dan 7perusahaan financial distress, tahun 2014 terdapat 2 perusahaan zona aman dan 8 perusahaanfinancial distress, tahun 2015 terdapat 2 perusahaan mengalami zona aman dan 8 perusahaanfinancial distress, tahun 2016 terdapat 2 perusahaan zona aman, 1 grey area dan 7 financialdistress, tahun 2017 terdapat 2 zona grey area dan 8 mengalami financial distress

Financial Distress Risk and Stock Price Crashes

2019 ◽  
Author(s):  
Christoforos Andreou ◽  
Panayiotis C. Andreou ◽  
Neophytos Lambertides
Keyword(s):  
Financial Distress ◽  
Stock Price ◽  
Distress Risk

Capital Market Imperfections and the Sensitivity of Investment to Stock Prices

2009 ◽  
Vol 44 (3) ◽  
pp. 551-578 ◽  
Author(s):  
Alexei V. Ovtchinnikov ◽  
John J. McConnell
Keyword(s):  
Capital Markets ◽  
Stock Prices ◽  
Financial Distress ◽  
Stock Price ◽  
Debt Overhang ◽  
Capital Market Imperfections ◽  
Investment Opportunities ◽  
Imperfect Capital Markets ◽  
Empirical Tests ◽  
External Equity

AbstractPrior studies argue that investment by undervalued firms that require external equity is particularly sensitive to stock prices in irrational capital markets. We present a model in which investment can appear to be more sensitive to stock prices when capital markets are rational, but subject to imperfections such as debt overhang, information asymmetries, and financial distress costs. Our empirical tests support the rational (but imperfect) capital markets view. Specifically, investment–stock price sensitivity is related to firm leverage, financial slack, and probability of financial distress, but is not related to proxies for firm undervaluation. Because, in our model, stock prices reflect the net present values (NPVs) of investment opportunities, our results are consistent with rational capital markets improving the allocation of capital by channeling more funds to firms with positive NPV projects.

scholarly journals 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

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.

scholarly journals ANALISIS FINANCIAL DISTRESS PADA PT TUNAS BARU LAMPUNG TBK DI BURSA EFEK INDONESIA

2017 ◽  
Vol 13 (2) ◽  
pp. 129-141
Author(s):  
Umi Ambarwati ◽  
Sudarwati Sudarwati ◽  
Rochmi Widayanti
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Financial Ratios ◽  
Z Score ◽  
Effective Strategies ◽  
Operational Costs ◽  
Score Method

This article aims to analyze the health of the company in PT Tunas Baru Lampung TBK in Indonesia Stock Exchange. The data comes from PT Tunas Baru Lampung TBK in 2013-2015. The methods used are Altman Z-Score, Springate, Zmijewski and Fulmer methods. The results of the study show that there are differences in predicted bankruptcy results between the Altman Z-score method, Springate, Zmijewski and Fulmer. This is due to differences in the use of financial ratios and criteria bankruptcy between Altman Z-score, Springate, Zmijewski and Fulmer. For that company is expected to increase sales, perform effective strategies, reduce operational costs to be more efesian so that companies can meet the company's health criteria.   Artikel ini bertujuan untuk menganalisis kesehatan perusahaan pada PT Tunas Baru Lampung TBK di Bursa Efek Indonesia. Data berasal dari PT Tunas Baru Lampung TBK pada tahun 2013-2015. Metode yang digunakan adalah metode Altman Z-Score, Springate, Zmijewski dan Fulmer. Hasil penelitian menunjukkan adanya perbedaan hasil prediksi kebangkrutan antara metode Altman Z-score, Springate, Zmijewski dan Fulmer. Hal ini karena adanya perbedaan penggunaan rasio keuangan dan kriteria kebangkrutan antara Altman Z-score, Springate, Zmijewski dan Fulmer. Untuk itu perusahaan diharapkan meningkatkan penjualan, melakukan strategi yang efektif, menekan biaya operasional agar lebih efesian sehingga perusahaan dapat memenuhi kriteria kesehatan perusahaan.

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