Study of Bankruptcy Potential in Property Industry Companies Going Public on The Indonesia Stock Exchange

Authors

DOI:

https://doi.org/10.30659/jrbi.v13i1.1186

Abstract

This study aims to determine and calculate the score of bankruptcy using Altman model, Springate
and Zmijewski. In addition, this study also aims to analyze whether there are significant differences
of these models, as well as test the effect on stock prices in the property industry companies that
go public on the stock exchange Indonesia. Variables used in this research is the Altman Z-Score,
Springate methods, methods Zmijewski, bankruptcy prediction scores and stock prices. The samples
used were 34 property companies listed on the Indonesia Stock Exchange from 2013 to 2014 period.
Sampling with purposive sampling technique. In this study, researchers used a method of analysis
Altman Z-score, Springate and Zmijewski to test potential bankruptcy. Furthermore, using a different
test engineering analysis Kruskal Wallis test and test the effect of using multiple regression with the
help of Microsoft Excel program and the social science statistical package (SPSS) 20.0 VERSION.
The results showed using Altman model there are 15 industrial firms potentially bankrupt property,
Springate models there are 19 companies that could potentially bankrupt, while the model Zmijewski
no company that could potentially bankrupt. In addition the results showed a significant difference
between the analysis using a model Altman, Zmijewski Springate and in assessing the company’s
bankruptcy in the property industry. Then the next research results showed that no significant
relationship between scores for bankruptcy against the company’s share price on the property
industry.

Keywords: Altman Z-score, Springate and Zmijewski, bankruptcy and stock prices.

Author Biographies

  • Muhammad Taufiq Abadi, Sultan Agung Islamic University
    STUDENT
  • Nunung Ghoniyah, Sultan Agung Islamic University
    LECTURER

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Published

2016-01-11

Issue

Vol. 13 No. 1 (2016): January 2016

Section

Articles

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