ANALYSIS OF FINANCIAL DISTRESS IN PLANTATION COMPANIES ON THE INDONESIA STOCK EXCHANGE FOR THE 2018-2021 PERIOD

Imam Ramadhan, Isfenti Sadalia, Sri Fajar Ayu

Abstract


This study aims to predict and analyze how the financial distress of companies in the plantation sector are listed on the Indonesia Stock Exchange in 2018-2021 using the Altman modified Z-Score, Springate, Zmijewski and Grover methods and to test the accuracy of financial distress predictions by calculating the level of accuracy of each number of predictions and error rates from the Altman modified Z-Score, Springate, Zmijewski and Grover methods for plantation sector companies listed on the Indonesia Stock Exchange for 2018-2021. The data analysis method used was Altman's modified Z-Score, Springate, Zmijewski, Grover, and paired sample t-test. Based on the results of the assessment of financial distress, the most accurate method for predicting financial distress in plantation sector companies listed on the Indonesia Stock Exchange is the Springate method with the highest accuracy rate of 85.00%, then the Altman Z-Score method with an accuracy rate of 57. 50%, the Grover method with an accuracy rate of 38.75% and Zmijewski with an accuracy rate of 17.50%

 

JEL: Q10; Q13; M10

 

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Keywords


financial distress, prediction, Altman Z-Score, Springate, Zmijewski, Grover

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v7i2.1509

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