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The accuracy of financial distress prediction models in various Indonesian industrial companies

W Wardhiah(1), Zulkifli Yusuf(2), N Nuslima(3), R Rasyimah(4), Ghazali Syamni(5Mail), Khairuddin Yahya(6),
(1) Universitas Malikussaleh, Aceh, 24355, Indonesia
(2) Universitas Malikussaleh, Aceh, 24355, Indonesia
(3) Universitas Malikussaleh, Aceh, 24355, Indonesia
(4) Universitas Malikussaleh, Aceh, 24355, Indonesia
(5) Universitas Malikussaleh, Aceh, 24355, Indonesia
(6) Universitas Malikussaleh, Aceh, 24355, Indonesia

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Abstract


Market participants use the forecast of the financial crisis as an indication and early warning system. This study aims to examine the efficacy of eight models for predicting bankruptcy in Indonesian industrial enterprises. Secondary data from various industrial sector companies listed on the IDX for the 2016–2020 timeframe was utilized in this study. The approach employed in this study, which is not based on the Z-Score from 1968, the Revised Z-Score from 1984, the Z-Score Modified from 1995, Springate from 1978, Ohlson from 1980, Zmijewski from 1983, Fulmer from 1984, or Grover from 2001, is a quantitative descriptive study method. Fulmer's model was proven to be foreseeable by the study's findings, and Grover and Almant improved it to make it more accurate than competing prediction models.


Keywords


financial distress; accuracy; various industry; Indonesia

   

Article DOI



DOI: https://doi.org/10.33122/ijase.v5i1.246 		       

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Pages: 14-20

   

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Copyright (c) 2023 Wardhiah, Zulkifli Yusuf, Nuslima, Rasyimah, Ghazali Syamni*, Khairuddin Yahya

International Journal of Advances in Social and Economics (IJASE) | E-ISSN: 2685-2691