Financial Distress, Bankruptcy Analysis and Implications For Stock Prices of Consumer Goods Companies in Indonesia

Susilowati, Etty; Simangunsong, John Marlintong

doi:10.22515/relevance.v2i2.1862

Cited by 5 publications

(5 citation statements)

References 22 publications

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“…The obtained results in this study are in harmony with the studies such as I. D. Dichev [45], J. D. Piotroski [75], J. M. Griffin and M. L. Lemmon [46], N. Apergis [51], I. B. Robu [52], E. Susilowati [53], G. Singh and R. Singla [54].…”

Section: Conclusion and Discussionsupporting

confidence: 91%

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The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s

Tekin

2021

jour

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In today’s globally competitive environment, companies must keep up with these competitive conditions to be successful. Failure of companies to show the expected financial performance, fulfil their financial obligations, or reach their financial targets is considered a financial failure or bankruptcy risk. Real Estate Investment Companies or Trusts (REICs or REITs) are capital market institutions that qualify as legal entities and are partnerships in a joint-stock company that provides financing to all kinds of real estate or real estate projects and bring together many investors for the desired real estate. REITs are an essential investment choice that continues its rapid development in Turkey. This study aims to examine the relationships between the ZScores calculated by periods of REIT companies traded in Borsa Istanbul between 2010–2019 and the stock price performances. In the study, primarily Altman Z-Score and Springate S-Score values of companies traded in Borsa Istanbul were calculated with the help of financial ratios. Then, Pedroni and Kao panel co-integration analysis and Dumitrescu-Hurlin panel causality analysis were performed. According to the analysis results, there is a long-term relationship between the financial failure scores of REIT companies and their stock prices. However, a causality relationship was found between the series.

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Section: Conclusion and Discussionsupporting

confidence: 91%

“…Similar results were also found by I. B. Robu [52] in Romania, by E. Susilowati [53] in Indonesia and by G. Singh and R. Singla [54]. I.…”

Section: Literature Reviewsupporting

confidence: 84%

The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s

Tekin

2021

jour

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“…Altman Z Score adalah skor yang ditentukan dari rasio-rasio keuangan dimana rasio tersebut mendeteksi kondisi keuangan perusahaan yang berkaitan dengan likuiditas, profitabilitas dan aktivitas perusahaan. Terdapat lima rasio yang dikombinasikan oleh Altman untuk menghitung Z-Score (Susilowati & Simangunsong, 2019;Puspita, 2019;Ananda, 2018;dan Shahwan, 2015) yaitu: a) Working Capital to Total Assets, merupakan salah satu rasio likuiditas yang mengukur ketersediaan modal kerja bersih dari total aset perusahaan dalam rangka mendukung operasional perusahaan. b) Retained Earnings to Total Assets, merupakan rasio yang mengukur akumulasi laba selama perusahaan berjalan.…”

Section: Literatur Revieuunclassified

Pandemi Covid-19 dalam Penyajian Pelaporan Keuangan dan Keberlangsungan Usaha melalui Prediksi Kebangkrutan

Astuti

Damayanti

Chasbiandani

et al. 2021

AFRE

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The main purpose of this study is to assess and analyze the business continuity (going concern) of companies before and during the Covid-19 pandemic. The sample of this research is 45 property sector companies listed on the Indonesia Stock Exchange (BEI) for the period 2019-2020 and meet predetermined criteria. This study uses the Altman Z-Score bankruptcy prediction model to assess the business continuity of the sample companies. This research proves that there is indeed an influence from the global Covid-19 pandemic. Companies that are experiencing financial problems and have a strong potential for bankruptcy increased from 2% at the end of 2019 to 51% at the end of June 2020. DOI: https://doi.org/10.26905/afr.v3i2.5451

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“…Lestari et al (2016) menunjukkan hal yang sama dimana tingkat financial distress berpengaruh secara signifikan terhadap harga saham. Hasil penelitian Kadim & Nardi (2018), Hikmah (2018), Abbas & Kusdianto (2019), Susilowati & John (2019), Apergis et al (2011) menunjukkan hasil nilai Z-score berpengaruh positif terhadap harga saham. Semakin tinggi nilai Z-score maka tingkat financial distress perusahaan semakin rendah dan harga saham akan meningkat, sehingga hubungan tingkat financial distress terhadap harga saham adalah negatif.…”

Section: Pendahuluanunclassified

“…Hasil penelitian ini sejalan dengan penelitian yang dilakukan oleh Oktaviani (2018), Lestari et al (2016), Kadim & Nardi (2018), Apergis et al Hikmah (2018), Abbas & Kusdianto (2019), Susilowati & John (2019) yang menunjukkan hasil bahwa tingkat financial distress berpengaruh negatif dan signifikan terhadap harga saham yang berarti ketika suatu perusahaan berada dalam kondisi safe zone atau memiliki nilai Z-score yang tinggi maka harga saham perusahaan tersebut meningkat.…”

Section: Tabel 9 Hasil Analisis Regresi Linier Sederhanaunclassified

ANALISIS TINGKAT FINANCIAL DISTRESS DENGAN MODEL ALTMAN Z-SCORE DAN PENGARUHNYA TERHADAP HARGA SAHAM (Studi Pada Perusahaan Asuransi di Bursa Efek Indonesia)

Dewi

2022

EJMUNUD

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Financial distress is a decline in financial conditions that occurs before bankruptcy or liquidation. Investors certainly do not want to invest in companies experiencing financial distress. Investors in companies experiencing financial distress tend to choose to sell their shares. This study is intended to analyze the level of financial distress with the Altman Z-score model and examine its effect on stock prices. The study was conducted on insurance companies on the Indonesia Stock Exchange during the 2015-2019 period, amounting to 11 companies. The sample was determined by purposive sampling technique. Altman Z-score model is used to determine the level of financial distress. The effect of the level of financial distress on stock prices was tested using a simple linear regression analysis technique. With the Altman Z-score model, it can be identified the level of financial distress experienced by insurance companies during 2015-2019, namely 6 companies remain in the safe zone, 4 companies have been in the gray zone and 1 company has been in the distress zone. The results of simple linear regression analysis show that the level of financial distress has a negative and significant effect on stock prices. Investors are advised to conduct financial distress analysis in making investment decisions. Keywords: Financial distress, Altman z-score, Stock Price

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Financial Distress, Bankruptcy Analysis and Implications For Stock Prices of Consumer Goods Companies in Indonesia

Cited by 5 publications

References 22 publications

The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s

The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s

Pandemi Covid-19 dalam Penyajian Pelaporan Keuangan dan Keberlangsungan Usaha melalui Prediksi Kebangkrutan

ANALISIS TINGKAT FINANCIAL DISTRESS DENGAN MODEL ALTMAN Z-SCORE DAN PENGARUHNYA TERHADAP HARGA SAHAM (Studi Pada Perusahaan Asuransi di Bursa Efek Indonesia)

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