Comparison analysis of Altman's and Foster's Z-score model in predicting bankruptcy: evidence from Indonesian automotive and component industries

Wahyudi Nurmansyah; Afdal Mazni; F Febriyanto

doi:10.14710/dijb.4.2.2021.126-135

DOI: https://doi.org/10.14710/dijb.4.2.2021.126-135

Comparison analysis of Altman's and Foster's Z-score model in predicting bankruptcy: evidence from Indonesian automotive and component industries

Wahyudi Nurmansyah, Afdal Mazni , F Febriyanto

Universitas Muhammadiyah Metro, Indonesia

Citation Format:

Abstract

The purpose of this study is to determine differences in bankruptcy predictions of the Altman and Foster models. The sampling technique used is purposive sampling with an observation period of 2016-2018 with 12 company samples per year. The analysis technique uses the Altman and Foster method with the paired two-sample t-test as a hypothesis test tool. Based on the results of the Altman and Foster Z- Score model of automotive and component industries in 2016-2018 it can be concluded that the financial model of Altman and Foster can predict bankruptcy. Furthermore, the hypothesis testing found that there is no differences in the results of the Altman and Foster bankruptcy prediction.

Fulltext View|Download

Keywords: comparison analysys; Altman’s model; Foster’s model; bankruptcy prediction

Article Metrics:

Article Info

Section: Articles

Language : EN

In Vol 4, No 2 (2021)

Recent articles

Front matter Back matter Comparison analysis of Altman's and Foster's Z-score model in predicting bankruptcy: evidence from Indonesian automotive and component industries The effect of perceived organizational support and psychological capital on OCB: mediating role of engagement Determinants of firm value: evidence from listed insurance companies in Indonesia More recent articles

Altman, Edward I. 1968. Financial Ratios, Discriminant Analysis and The Prediction of Corporate Bankcrupty. Journal Of Financial, 23 (4) : 189-209
Altman, Edward I. 2002. Revisiting Credit Scoring Models in a Basel II Environment. Prepared for “Credit Rating:Methodologies, Rationale, and Default Risk”,
Chairunisa, Ayu Astrid. 2017. Analisis Tingkat Kebangkrutan Pada Perusahaan Pertambangan Batubara Yang Terdapat Di Bursa Efek Indonesia. Jurnal Falkultas Ekonomi Universitas 17 Agustus 1945 Samarinda
Furqon (2009).Statistika Terapan untuk Penelitian.Bandung: Alfabeta
Hanafi, Mamduh. 2014. Manajemen Keuangan. Yogyakarta: BPFE
Harahap, Sofyan Syafri. 2010. Analisa Kritis atas Laporan Keuangan. Jakarta: PT Raja Gafindo Persada
Husnan, Suad. 2002. Manajemen Keuangan Teori Dan Penerapan (Keputusan Jangka Pendek). Yogyakarta: BPFE
Jakarta: PPM
Kementerian Perindustrian. 2021. Menperin: Industri Otomotif Jadi Sektor Andalan Ekonomi Nasional. kemenperin.go.id. Retrieved February 15, 2022, from https://www.kemenperin.go.id/artikel/22297/Menperin:-Industri-Otomotif-Jadi-Sektor-Andalan-Ekonomi-Nasional
Kosasih. 2010. Analisis Tingkat Kebangkrutan Model Altman dan Foster pada
Liang S Foo, Pathak Shaakalya. 2016. Financial Health and Corporate Performance of Listed Manufacturing Companies in South Korea and Taiwan : A Comparative Study of the Two Asian Tigers. Asian Journal of Business and Management Volume 04. School of Accountancy, Singapore Management University
Lili dan Trisnadi. 2014. Analisis Komperatif Dalam Memprediksi Kebangkrutan Pada PT. Indofood Sukses Makmur Tbk. Jurusan Manajemen Keuangan,STIE MDP, Palembang
Lyandres, E., & Zhdanov, A. 2021. Investment opportunities and bankruptcy prediction. Journal of Financial Markets, 16(3), 439-476
Muslich, Mohamad. 2008. Manajemen Keuangan Modern:Analisis, Perencanaan dan Kebijaksanaan. Jakarta: Bumi Aksara
Nurhidayat, D. 2021, November 16. Gaikindo: Indonesia Jadi Pasar Otomotif Terbesar di asia tenggara. mediaindonesia.com. Retrieved February 15, 2022, from https://mediaindonesia.com/ekonomi/447237/gaikindo-indonesia-jadi-pasar-otomotif-terbesar-di-asia-tenggara
Perusahaan Textile dan Garment Go Public di Bursa Efek Indonesia (Periode 2007-2009). Skripsi Universitas Islam Negeri Syarif Hidayatullah Jakarta
Pihadi, Toto. 2011. Analisis Laporan Keuangan Lanjutan Proyek dan Valuasi
Sekaran, Uma. 2009. Metodologi Penelitian untuk Bisnis. Ed.4. Jakarta: Salemba Empat
Weston, J. Fred dan Thomas E. Copeland. 1986. Managerial Finance. Diterjemahkan oleh Jaka Wasan dan Kibrandoko. 1997. Manajemen Keuangan. Ed.9. Jakarta: Binarupa Aksara

Last update:

No citation recorded.

Last update:

No citation recorded.

Author(s) Rights

In order for Diponegoro International Journal of Business (DIJB) to publish and disseminate research articles, we need publishing rights (transferred from author(s) to publisher). This is determined by a publishing agreement between the author(s) and DIJB. This agreement deals with the transfer or license of the copyright of publishing to DIJB, while authors still retain significant rights to use and share their own published articles. DIJB supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.

As an author, you have rights to a large range of uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in DIJB has wide rights to use their works for teaching and scholarly purposes without needing to seek permission, including:

use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
use for internal training by the author's company;
distribution to colleagues for their research use;
use in a subsequent compilation of the author's works;
inclusion in a thesis or dissertation;
reuse of portions or extracts from the article in other works (with full acknowledgement of final article);
preparation of derivative works (other than commercial purposes) (with full acknowledgement of final article);
voluntary posting on open web sites operated by author or author’s institution for scholarly purposes,

(but it should follow the open-access license of Creative Common CC-by-SA License).

Authors/readers/third parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially, but they must give appropriate credit (the name of the creator and attribution parties (authors detail information), a copyright notice, an open-access license notice, a disclaimer notice, and a link to the material) and provide a link to the license.

Authors/readers/third parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, re-use portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).

Copyright Transfer Agreement for Publishing (Publishing Right)

The authors submitting a manuscript do so on the understanding that if accepted for publication, the copyright for publishing (publishing right) of the article shall be assigned/transferred to the Department of Management, Faculty of Economics and Business, Universitas Diponegoro as the publisher of DIJB.

Upon acceptance of an article, authors will be asked to complete a 'Copyright Transfer Agreement for Publishing (CTAP)'. An e-mail will be sent to the Corresponding Author confirming receipt of the manuscript together with a CTAP form by the online version of this agreement.

DIJB, the publisher, and the editorial board make every effort to ensure that no wrong or misleading data, opinions or statements be published in the journal. In any way, the contents of the articles and advertisements published in DIJB are sole and exclusive responsibility of their respective authors and advertisers.

Remember, even though we ask for a transfer of copyright for publishing (CTAP), our journal Author(s) retain (or are granted back) significant scholarly rights as mentioned before.

The Copyright Transfer Agreement for Publishing (CTAP) Form can be downloaded here