Indonesian Journal of Islamic Economics Research
Vol 1, No 2 (2019): Indonesian Journal of Islamic Economics Research

Influence of bankruptcy prediction and residual income on company share prices in various industry sectors

Shinta Disky Azzharah (IAIN SALATIGA)



Article Info

Publish Date
26 Nov 2019

Abstract

Research use the panel data regression analysis model aims to determine the predictions of bankruptcy with the Altman Z-Score model and residual income influence the stock prices of companies listed in the Indonesian Syariah Stock Index (ISSI) in the period 2014 to 2018. Research This is a quantitative study using secondary data in the form of annual financial statements published by companies, with sampling using purposive sampling to obtain a sample of 23 manufacturing companies engaged in various industrial sectors. The research method uses the fixed effect model approach. The analysis said that the bankruptcy prediction using the Altman Z-Score model showed a significant negative effect on stock prices, while residual income had no effect on stock prices. In addition, the Altman Z-Score shows that many companies enter the gray area cut-off point and even go bankrupt, thus making shareholders reduce their share prices for the safety of their shares in the capital market.

Copyrights © 2019






Journal Info

Abbrev

ijier

Publisher

Subject

Economics, Econometrics & Finance

Description

Indonesian journal of Islamic Economics Research [IJIER] is a scientific journal that countains of theoritcal research and studies on islamic economics issues. Managed by Faculty of Islamic Economics and Business IAIN Salatiga. Published by LP2M IAIN Salatiga. This journal encompasses original ...