Dinasti International Journal of Economics, Finance & Accounting (DIJEFA)
Vol. 1 No. 4 (2020): Dinasti International Journal of Economics, Finance & Accounting (September - O

PREDICTION OF FINANCIAL DISTRESS IN THE AUTOMOTIVE COMPONENT INDUSTRY: AN APPLICATION OF ALTMAN, SPRINGATE, OHLSON, AND ZMIJEWSKI MODELS

Pratama, Hendra (Unknown)
Bambang Mulyana (Unknown)



Article Info

Publish Date
23 Sep 2020

Abstract

This study aims to identify and examine the condition of financial distress in the automotive component industry issuers in the period 2014 ~ 2018, using the Altman Z-score, Springate S-score, Ohlson O-score, and Zmijewski X-score against financial ratios as an analysis form of company management to predict the early warnings of company bankruptcy. This study uses quantitative, secondary, and panel data; while the sample uses a non-probability boring sampling technique of 11 companies. The results showed that these four models can predict financial distress by identifying each model. Altman’s model found 8 distress zone points, 16 grey zone points, and 31 safe zone points. Springate’s model found 37 points in the distress zone, and 18 points in the safe zone. Ohlson's model found 3 points in the distress zone, and 52 points in the safe zone. Zmijewski's model found only 1 point in the distress zone

Copyrights © 2020






Journal Info

Abbrev

DIJEFA

Publisher

Subject

Economics, Econometrics & Finance

Description

The author is invited to submit a paper for Dinasti International Journal of Economics, Finance & Accounting (DIJEFA). Topics related to this journal include but are not limited to: Accounting and financial reporting Audit Accounting management Taxation Corporate finance Personal finance Financial ...