Abstract
The purpose of this research is to determine companies financial distress base on Altman, Springate, Zmijewski, Ohlson and Grover Models and to assess the accuracy of those five prediction models in coal mining sector firms listed in Indonesia Stock Exchange (IDX) for the period 2015 – 2019. This research has 22 samples of 23 coal mining firms listed in IDX base on the purposive sampling technique. This study is a descriptive design using quantitative and panel data. The research data is analyzed using the Kruskal Wallis test because there are more than two prediction models to compare and the data are not normally distributed. The result indicates that the Modified Altman and Ohlson Models are the most accurate predictive models because these models have the highest accuracy rate of 90.91%, followed by Zmijewski Model, which has an accuracy rate of 86.36%, then Grover Model has 81.82% accuracy rate, and the lowest prediction rate is Springate Model with the value of 63.64%.
Highlights
1 Coal prices fluctuation from 2010 to 2020 and high-cost operation have made the coal mining industry included in the highrisk business category
The result indicates that the Modified Altman and Ohlson Models are the most accurate predictive models because these models have the highest accuracy rate of 90.91%, followed by Zmijewski Model, which has an accuracy rate of 86.36%, Grover Model has 81.82% accuracy rate, and the lowest prediction rate is Springate Model with the value of 63.64%
Framework The hypotheses are formulated for this research as follow: H1: There are differences in financial distress prediction result using Modified Altman, Springate, Zmijewski, Ohlson, and Grover Models
Summary
Research on corporate financial distress in Indonesia has been published. This study has some differences compared to previous research. The first point is about the differences in the object. Safitri and Hartono (2014) have been researched the financial sector. Puspita Sari (2015) analysed the transportation sector. Primasari (2018) analysed financial distress in the consumer goods sector. Imelda & Alodia (2017) conducted research in the manufacture industry. The object of this research is the coal mining industry. N Company o1 Adaro Energy 2 Atlas Resources 3 Bumi Resources 4 Harum Energy 5 Indika Energy 6 Perdana Karya Perkasa 7 Bukit Asam 8 Petrosea 9 SMR Utama 10 Toba Bara Sejahtera
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