IPTEK Journal of Proceedings Series
No 1 (2020): The 1st International Conference on Business and Engineering Management (IConBEM)

Financial Distress Prediction Models in Property Sector Companies Listed in Indonesia Stock Exchange

Meita Tri Herlina (Department of Management, Universitas Surabaya, Surabaya)
Werner Ria Murhadi (Department of Management, Universitas Surabaya, Surabaya)



Article Info

Publish Date
18 Jan 2021

Abstract

Along with the unstable national and global economic conditions, investors and consumers defend themselves to invest in the property sector. Companies go public in obtaining capital markets as a means to obtain sources of funds. Investors and creditors will see the financial condition required before the company will increase financial distress (financial distress) or not before investing their capital. Therefore, analysis and prediction of a company's financial problems is very important. This study uses the Financial Distress model by using discriminant analysis. The independent variables used are financial ratios which are divided into 4 categories (1) Liquidity Ratios, (2) Solvency Ratios, (3) Activity Ratios, (4) Profitability Ratios. This research uses quantitative with the Multivariate Discriminant Analysis (MDA) model. The sample data used in this study includes property, real estate, and construction sector companies listed on the Indonesia Stock Exchange in the 2014-2018 period. This study produces a financial distress model Z-score = -3,569 + 6,910DTA -1.107DTE + 7,515ROE + 3,573OPM with a cut-off value of -3,521. When the z-score of the company -3,521, the company is included in the non-financial pressure group.

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Journal Info

Abbrev

jps

Publisher

Subject

Computer Science & IT

Description

IPTEK Journal of Proceedings Series publishes is a journal that contains research work presented in conferences organized by Institut Teknologi Sepuluh Nopember. ISSN: 2354-6026. The First publication in 2013 year from all of full paper in International Conference on Aplied Technology, Science, and ...