REGRESSION AND CORRELATION ANALYSIS STOCK PRICE WITH BANKRUPTCY (CASE STUDY WITH ZMIJEWSKI BANKRUPTCY MODEL)

Teguh Sugiarto,Ludiro Madu,Sri Rahayu,Ahmad Subagyo,Amir Mohamadian Amiri

doi:10.29121/granthaalayah.v5.i5.2017.1838

Teguh Sugiarto, Ludiro Madu + Show 3 more

Open Access

https://doi.org/10.29121/granthaalayah.v5.i5.2017.1838

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Abstract

The purpose of this study to determine how the correlation effect of corporate bankruptcies with stock prices. The study was conducted on companies in the ceramics, glass and porcelain sectors whose shares are traded on the Indonesia Stock Exchange and publish the financial statements in Indonesia Stock Exchange (BEI) in the period 2010-2014. The method used in this research is correlation and regression of OLS. From the research that has been done can be concluded that, the result of regression test of five models at the proposed quadratic value of R is very low and indicate the happening of spurious regression. Using hyposis made concluded that Model H0: βi = 0 regression is not significant, whereas correlation test on proposal received H0: βi ≠ 0 happened weak correlation between bankruptcy analysis with stock price.

Highlights

The company's performance is information that can be used by investors or prospective investors in the capital market to decide the investment
From the model Hypothesis 1 to 5 which is made on the effect of stock prices to corporate bankruptcy began in 2010-2014
This study examines the relationship between stock prices with corporate bankruptcy using OLS regression and correlation

Summary

Introduction

The company's performance is information that can be used by investors or prospective investors in the capital market to decide the investment. In making investment decisions of market participants or investors can calculate the ratio of each financial statements published by the company. Bankruptcy is a condition in which the companies no longer afford to operate the company well because of the financial difficulties experienced very severe. In this study will be used bankruptcy theory commonly used is Zmijewski Model. Companies selected are companies that continuously deliver or publish financial statements and its shares are traded on the Indonesia Stock Exchange (BEI) in the period 2010-2014. Under these conditions, the study titled: Regression and Correlation Analysis Stock Price With Bankruptcy (Case Study With Zmijewski Bankruptcy Model)

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