Abstract
Often companies that have been operating for a certain period forced to disperse because of increased financial distress that caused bankruptcy. There are two models that can be used to predict bankruptcy of companies, that is Altman model (Z-score) and Ohlson model. This study aims to determine the accuracy of the Altman model (Z-Score) and Ohlson's model in predicting bankruptcy of delisting companies in Indonesia Stock Exchange for 2015-2019 period.The population in this study were all of delisting companies in Indonesia Stock Exchange for 2015-2019 period, totaled 17 companies. The number of samples used in this study were 8 companies, by using purposive sampling method. Data analysis used data processing application SPSS version 25. The results showed that accuracy of the Altman model is 58.3%, while the Ohlson model is 79.2%. The conclusion of this research Ohlson model has the highest accuracy that compared to Altman model in predicting bankruptcy at delisting companies in Indonesia Stock Exchange for 2015-2019 period, with accuracy values of Ohlson model is 79.2% and 58.3% for the Altman model. For further researchers, it is expected to increase the number of samples of companies studied and extend the research periods in order to provides more accurate results, and combining the Altman and Ohlson models with other bankruptcy prediction models that can be applied in companies in Indonesia.
Highlights
With the increasing development of world economy and international trade pose a very tight business competition (Guniarti, 2014)
Criteria for delisting companies sampled in this study, as follows: (a) the delisting of the Company in the Indonesia Stock Exchange (IDX) in the period 2015-2019. (b) The Company experienced involuntary delisting in the period from 2015 to 2019 because of financial problems that indicate that the company is experiencing signs of bankruptcy. (c) A company that provides financial data for three consecutive years before the stated delisted by the Indonesia Stock Exchange (IDX)
Based on the results of research and discussion conducted in this study using two analytical models that is Altman and Ohlson, it can be concluded that Ohlson model have the highest percentage of accuracy compared with Altman model in predicting bankruptcy of delisting companies in Indonesia Stock Exchange (BEI) in 2015-2019, with the accuracy of each model is 79.2% for Altman model and 58.3% for Ohlson models
Summary
With the increasing development of world economy and international trade pose a very tight business competition (Guniarti, 2014). Companies are able to survive in the competition is the company that can adapt to the changes occurring in the business world (Pitoy et al, 2016). Managers are required to have a better ability to manage the company that the company could move quickly to anticipate changes in the existing (Wulandari et al, 2015). One of the barriers to business development is the amount of capital required. Analysis of the financial statements essentially to conduct an assessment of the financial situation and changes in the financial position or the progress of a company (Burhanuddin, 2013)
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