Financial Distress Condition Research Articles

ANALISIS PENGARUH RASIO KEUANGAN TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN PROPERTY DAN REAL ESTATE YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2011

This research had a purpose to provide empirical evident about factors that financial distress of property and real estate company ware listed in Bursa Efek Indonesia 2011. The examined factors on this research ware profit margin, profitability, financial leverage, liquidity, position of cash, Growth, and efisiently of operation. The samples consist of 34 company which had not on financial distress condition, and 6 company which had financial distress. The statistic method used to test on the research hypothesis is logit regression. The result showed that profit margin, profitability, financial leverage, liquidity, position of cash, Growth, and efisiently of operation had classification power to know financial ratio’s influence financial distress property and real estate company ware listed in Bursa Efek Indonesia 2011. This research also indicated that profit margin, profitability, financial leverage, liquidity, position of cash, Growth, and efisiently of operation ratios ware statistically different for financial distress company and non financial distress company, finally only profitability was significant variables in determinant financial distress company.

Influence of The Ratio of Profit Margin, Financial Leverage Ratio, Current Ratio, Quick Ratio Against The Conditions and Financial Distress

Financial distress is occurred before bankruptcy. This condition could be predicted by analyzing Financial Statement. This study aims to determine whether there is significant influence between profit margin ratio, financial leverage ratio, current ratio, and quick ratio on Financial distress to determine how much their influeance on Financial distress in a Company. Based on result of data processing using SPSS 17.0 version, the author obtained value of multiple correlation coeffiicient in 2008 is 0.933 (R), it means X1 (profit margin ratio), X2 (financial leverage ratio), X3 (current ratio) and X4 (quick ratio) jointly have strong and positive relationship in predicting Financial distress, And for value of multiple correlation coefficient in 2009, obtained 0.582 (R), it means X1 (profit margin ratio), X2 (financial leverage ratio), X3 (current ratio) and X4 (quick ratio) jointly have strong and positive relationship in predicting Financial distress. Based on F-test calculation in 2008, multiple linear regression is obtained that Fhitung > Ftable. Value of Fhitung is 40,962, whereas value of Ftable is 2,922, it means that Ha is rejected and Ho is accepted. This means regression model can be used to predict financial distress condition or it can be said that X1 (profit margin ratio), X2 (financial leverage ratio), X3 (current ratio) and X4 (quick ratio) jointly influence significanly on Company’s Financial Statement condition (Y). whereas for F-test calculation in 2009, multiple linear regression is obtained that Fhitung > Ftable , value of Fhitung is 13,839 and value of Ftable is 2,922. it means that Ha is rejected and Ho is accepted. This means regression model can be used to predict financial distress condition or it can be said that X1 (profit margin ratio), X2 (financial leverage ratio), X3 (current ratio) and X4 (quick ratio) jointly influence significantly on Company’s Financial Statement condition (Y).

The Effect of Financial Ratios on Financial Distress Conditions in Sub Industrial Sector Company

This study aimed to analyze the influence of financial ratios proxied by the current ratio, the retained earnings to total assets, earnings before interest and tax to total assets, return on equity, debt to assets ratio, and total assets turnover against Financial distress. The population in this study is a sub company of various industry listed in Indonesia Stock Exchange (IDX) in the period from 2013 to 2015 with the number of 40 companies. The sampling technique used purposive sampling technique and acquired 35 companies with 105 units of analysis. Data were analyzed with descriptive statistics and logistic regression. These results indicate that earnings before interest tax to total assets and return on equity have an impact on financial distress. While the current ratio, the retained earnings to total assets, debt to assets ratio, and total assets turnover has no influence on the financial company’s distress. The conclusion of this research is that the company’s financial distress condition can be avoided by reducing the financing coming from debt. In addition, increasing sales and maximizing the use of assets and equities that companies have can also reduce and avoid the company from financial distress.

ANALISIS PENGARUH RASIO PROFITABILITAS, LEVERAGE, LIKUIDITAS, FIRM AGE, DAN KEPEMILIKAN INSTITUSIONAL TERHADAP FINANCIAL DISTRESS

The condition of financial distress is a stage of corporate financial decline thatoccurred before a firm bankrupt. The purpose of this research is to analyze theinfluence of profitability, leverage, liquidity, firm age, institutional ownership of thepossibility of financial distress on non-financial services companies listed on theIndonesia Stock Exchange 2014-2016.The method of analysis used in this studyis binary logistic regression. Based on purposive sampling method, this studyobtained 89 companies as samples with 267 observation data. The results of thisstudy indicate that profitability, liquidity, firm age, and institutional ownership havea significant negative effect on the possibility of financial distress. Meanwhile, theleverage variable has a significant positive effect on the possibility of financialdistress.

KETEPATAN MODEL ALTMAN, SPRINGATE, ZMIJEWSKI, DAN GROVER DALAM MEMPREDIKSI FINANCIAL DISTRESS

This study aims to identify and analyze the accuracy models of financial distress between the model results of Altman, Springate, Zmijewski, and Grover. The model used by investors, creditors and the company itself who will invest in the company and evaluate the financial performance. Samples from this study are 1.321 firm-year, collected from Indonesia Stock Exchange for the period 2012-2016 and were selected using purposive sampling method. The data used in this study are financial reports of each company. The data obtained were tested with logistic regression. This study shows that the model of Altman, Springate, Zmijewski, and Grover has a significant impact and can be used for predicting the condition of financial distress. However, the Springate model is the most appropriate model for predicting the condition of financial distress because it has the highest level of coefficient determination compared to other models.

Pengaruh Penerapan Corporate Governance Terhadap Kondisi Kesulitan Keuangan

This study examined the effect ofthe implementation of corporate governance on the condition of the financial distress of manufacturing companies listed on the Indonesia Stock Exchange (IDX). The implementation of corporate governance proxied with the proportion of managerial ownership, proportion of institutional ownership, number of the boards of directors, proportion of independent commissioners, and existence of the audit committee. Samples used in this study was manufacturing companies listed on the Indonesia Stock Exchange (IDX) with 2012 up to 2016 as an observation period. The total study samples was 48 firms with 96 firm year are determined by the method of purposive sampling. This study used Logistic Regression to examine the effect of the implementation of corporate governance of the condition of the company's financial distress. The results of this study indicated that The number of the boards of directors and the proportion of independent commissioners variables were not proven to have significant influence on the condition of the company's financial distress. The proportion of managerial ownership, the proportion of institutional ownership, and the existence of the audit committee variables proved to have a significant influence on the condition of the company's financial distress with a positive influence.
 Keywords: board of directors, independent commissioners, managerial ownership, institutional ownership, audit committee, financial distress, logistic regression

PENGARUH PERPUTARAN PIUTANG DAN SOLVABILITAS TERHADAP KONDISI FINANCIAL DISTRESS PERUSAHAAN MANUFAKTUR SEKTOR GARMEN DAN TEKSTIL DI BURSA EFEK INDONESIA

Manufacture Sub Sector Garment And Textile have financial distress condition. Increas of sales is one of choice for company can be competitive in free market. But increase of sales will be followed by the many possibilities of uncollected receivable or the low receivable turnover which can effect forced the company to further provide working capital. One way is to get working capital from a third part or what we call debt.This research aims to determine the effect of receivable turnover and the solvency ratio toward the financial distressThe problems of the research were: 1) is the receivable turnover effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015? 2) is the leverage ratio effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015 ? 3) Are the receivable turnover and solvency ratio effect toward financial distress condition on Garmen and textile company Listed on IDX on 2011-2015?The sample of this research is 11 Manufacture company of sub sector Garmen And Textile were taken by using purposive sampling techniques. This research data used secondary data that getting from literature review. Data were tested using multiple linear regression analysis to determine the effect between one variable with another variables, and the data was then processed using SPSS 22.0 for windows.Result of the research showed that partially, receivables turnover hadn’t a significant effect toward the financial distress. Partially, solvency ratio (Debt to Asset) had a significant influence toward financial distress Simultaneously, receivable turnover and solvency ratio had a significant effect toward financial distress. Kata kunci:Waste Bank, Waste Bank Management, Waste Bank Basic Concepts, Economic Improvement of the Family

How to Improve the Financial Conditions of Local Governments in a Period of Crisis: An Explanatory Case Study

The context of austerity and crisis in the local governments has focused on looking for a solution to avoid the distress while also improving financial health. Therefore, a system to monitor the financial situation of local authorities is needed in order to understand what the governments’ proceeding to manage the crisis are. This paper aims to analyse the financial distress in the municipality of Rome to evaluate the processes that occur inside the “black box” of the organizational, institutional and strategic implementation of the reorganization practices and routines, also highlighting what are the indicators of the financial conditions that fall into either a positive or negative area so as to implement adequate planning. The analysis is conducted through an explanatory case study to understand and to explain the reasons for management practices in a condition of financial distress. The main finding shows that the case of Rome represents a good example of the financial resilience through a combination of capacities and reactions such as management of slack resources and income generation.

ANALISIS FINANCIAL DISTRESS STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR YANG LISTING DI BURSA EFEK INDONESIA

The research aims to analyze the financial conditions to assess financial health at a manufacturing company in Indonesia Stock Exchange Listings. The benefits of the research is to provide material information to management and stakeholders regarding financial health as a material consideration for management or other parties, such as investors and potential investors, creditors and other parties for decision making.
 
 The population of the research was the financial report of a manufacturing company in Indonesia stock exchange listing as many as 140 companies. Sample research is as many as 30 companies. Opersionalisasi research is variable: the ratio of working capital to Total Assets, the ratio of net income to Total Assets was detained, the ratio of EBIT to Total Assets, and the ratio of the value of the capital markets themselves by taking action against Total Debt in 2009-2011. The required data are secondary data collected through technical documentation, data analysis techniques used are descriptive method.
 
 Based on the results of the study it can be concluded that corporate financial kondish manufacturing Indonesia stock exchange listings are rated from financial ratios, that ratio analysis is not membarikan a clear picture to stakeholders about health conditions and symptoms of the bankruptcy of the company. The listhne manufacturing company in BEI has not used the Z-Score model to know their financial health. Sporting results results of the discriminant equation obtained data 0, 553X1 0, 507X2 0, 409X3 0, 009X4. The value of the discriminant tells us that the ratio of working capital to Total Assets, the ratio of net income to Total Assets was detained, the ratio of EBIT to Total Assets and the ratio of the value of Own capital market Debt to Total positive effect of bankruptcy prediction manufacturing company listed in the stock exchange Inonesia. Wilks Lambda test results show that the ratio of working capital to Total Assets Ratio Return on hold, with a Total Assets, the ratio of EBIT to Total assets and market value of private equity with Total debt, significant positive effect on the symptoms of a manufacturing company in bankruptcy listings in Indonesia stock exchange. The z-score of 2009 indicates that its financial condition healthy companies as much as 22 companies and there are 8 companies in financial distress, indicating conditions are forecast to be bankrupt. In 2010, there were 21 companies that have a healthy financial condition while nine companies in
 
 In 2011, there are 24 companies that have a healthy financial condition while 6 company again in conditions of financial distress which indicates the forecast will go bankrupt. The advice given as consideration to the company is the company should implement a Z-Score method for knowing the financial condition, whether in financial distress or in kodisi healthy so that management and the users of the financial statements and other information to assess and predict the likelihood of the presence of symptoms of the bankruptcy of the company

FINANCIAL DISTRESS ANALYSIS WITH ALTMAN Z-SCORE APPROACH AND ZMIJEWSKI X-SCORE ON SHIPPING SERVICE COMPANY

The purpose of this study is to analyze the financial distress condition of such service company by employing the method of Altman and Zmijewski as well as comparing the analysis result using both methods. This is a descriptive quantitative study with the sampling technique of purposive sampling. The number of samples of this study is 4 shipping service companies listed at Indonesian Stock Exchange since 2010, such as PT. SAMIN, PT. BLT, PT. MitrabahteraSegaraSejatiTbk (PT. MBSS) dan PT. Wintermar Offshore Marine Tbk (PT. WOM). The data are analyzed using Altman and Zmijewski method. The result indicates that out of four service companies: PT. MBSS is the most financially stable company, while PT. BLT is the company with the worst condition of financial distress condition. The use of both methods also produces results which are not different; what is different is only in terms of the assessment standards. It is advisable to predict financial distress in shipping companies using more than one method for every method employs different standard just to confirm the result.

BANKRUPTCY ANALYSIS USING ALTMAN Z SCORE MODEL IN MANUFACTURING COMPANY AT INDONESIA STOCK EXCHANGE IN 2013-2014

Analysis of financial distress is very important, because it enables to assess an indication of the company's financial distress, how the indication of financial distress using Altman z-score in industry manufacturing sector in 2013-2014, and whether the Altman z-score model can be used as a tool in predicting the tendency of financial distress. The purpose of this study is to analyze the financial distress of 125 manufacturing companies with different sectors and subsectors using Altman Z-Score model in 2013 and 2014. The source of data used was secondary data, such as financial statements of manufacturing companies’ publication issued by BEI and obtained from the internet by downloading through the website: www.idx.com. This study employed descriptive quantitative method. The findings of the Z-Score index on manufacturing companies in 2013 were occupied by PT. Intan Wijaya International Tbk. in chemical subsector, and in 2014 Herbal and Pharmaceutical Industry of PT Sido Muncul Tbk. was the first highest rank and healthy condition. Whereas the lowest rank was PT. Asia Pacific Fiber Tbk. in textile and garment sub-sector in 2013 and 2014, having financial distress condition. The findings of this study are not consistent or even in accordance with the reality which shows that the Altman method cannot be used as a tool to indicate a tendency towards company’s financial distress.

DERIVATIVE INSTRUMENTHEDGING ACTIVITY ON COMPANY’S INTERNAL AND EXTERNAL ECONOMIC FLUCTUATIONS

<p>Between 2008-2009, Indonesia had financial crisis which made companies tried hard to stabilize its economy and found solutions or preventive action to resolve the problems of the crisis. Several ways can be applied to resolved these risks, and hedging activity was one solution. Data sampling in this article were taken from automotive industry listed at Indonesian Stock Exchange (BEI) between 2010-2014. The purpose of this study is to determine activity of derivative instruments to hedge the volatility in economic conditions of internal and external company. Internal economy condition is described by financial distress and external economy condition is described by economic exposure. Logistic regression analysis is a tool used in this research. The results indicate that financial distress provides significant negative effect on implementation of hedging activities, while economic exposure does not affect the implementation of hedging activities. Further research can use other sector or using all sector companies listed at the Indonesian Stock Exchange (BEI) and with a longer period of time. However, added some independent variables can affect hedging activities such as interest rates and inflation.</p>

Analisis Kebangkrutan dengan Model Altman Z-Score pada Perusahaan Sektor Industri Dasar dan Kimia di Bei Periode 2013-2014

The purpose of this study is to analyze the company's financial distress on basis industry and chemical sectors as many as 57 companies using the ALTMAN Z-Score model in 2013-2014. The data which used was secondary data, such as Financial Statements of manufacturing company publication issued by Indonesian Stock Exchange (BEI) and obtained by downloading the website: www.idx.com. This study uses descriptive quantitative method. The finding of Z-Score index in basis industry and chemical sector in 2013 is occupied by PT. Intan Wijaya Internasional Tbk on chemical subsector and 2014 is occupied by PT. Alakasa Industrindo Tbk on metal subsector and others, with the first highest rank and healthy condition, whereas the last and lowest rank on wood and processing sector in 2013-2014 is PT. SLJ Global Tbk, with having financial distress condition. The findings of this study are not consistent or even in accordance with the reality which shows that the Altman method can not be used as a tool to indicate a tendency towards company’s financial distress.

ANALISIS PREDIKSI FINANCIAL DISTRESS MENGGUNAKAN MODEL ALTMAN Z-SCORE, ZMIJEWSKI, SPRINGATE PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

The main purpose of this research is to analyze or predict the level of financial distress at PT. Indocement Tunggal Prakarsa Tbk and PT. Astra International Tbk uses several methods namely altman, zmijewski and springate. The annual financial report data used in this study is secondary dataobtained from the Indonesia Stock Exchange. The results showed, when tested using the method of Altman and Zmijewski, the two companies condition are in non-financial distress, but when tested using Springate method, in 2013 – 2016, PT. Astra International Tbk indicated in financial distress condition.

Pengaruh Laba, Arus Kas Dan Corporate Governance Terhadap Financial Distress (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015)

This study aimed to examine the effect of earnings, cash flow and corporate governance on financial distress. The corporate governance in this study using the indicator managerial ownership, institutional ownership and the board size.
 The population in this of the manufacturing companies listed on Indonesia Stock Exchange at the period of 2011-2015. Based on the criteria purposive sampling method, samples obtained is 28 companies in period 2011-2015 so obtain 140 observations. This study used logistic regression analysis.
 The result of this research showed that manajerial ownership has a positive effect and the board size have negative effect on the financial distress condition. This research failed to does not effect of the earnings, cash flow and institutional ownership of the financial distress condition.

Tensions in managerial attention in a company in crisis

PurposeThe purpose of this paper is to understand how in a situation of a crisis can Management Accounting Systems (MAS) create tensions in attention to information between top and line managers.Design/methodology/approachThe study is based on a field study.FindingsThe findings based on an attention-based view on organizations demonstrate how change to an MAS introduced to handle the crisis failed to integrate top and line managers’ attention toward the common issues. Tightening of budget control was an expected response in such a situation. However, this change produced rather the opposite result – attention to information articulated by the top and line managers became even more disintegrated. This was visible in terms of different interpretations of both the reasons and the strategy of how to get out of the crisis – this is what we call a tension in attention.Research limitations/implicationsThe study is subject to the usual limitations of case-based research.Practical implicationsImplications from the study is that there is a need for caution about how managers move in the beginning of the crisis because the initial response sets a tone and trajectory of the crisis. In practice, this means that sense making processes are important in an early stage of a crisis to avoid tensions in attention between different groups in the organization.Originality/valueThe authors argued that little research has been conducted so far regarding what information managers focus their attention on in organizations under financial distress conditions. The originality is the use of an attention-based view together with organizational psychology to understand this area.

Factors to Predict the Financial Distress Condition of the Banking Listed in The Indonesia Stock Exchange

Penelitian ini dilakukan dengan tujuan untuk mengetahui pengaruh dari variabel yang diteliti dalam memprediksi probabilitas terjadinya financial distress sektor perbankan di Indonesia. Variabel dalam penelitian ini dipilih dengan pendekatan 5C, yang kemudian diproxykan menjadi GCG (Good Corporate Governance), ROA (Return on Asset), LDR (Loan Deposit Ratio),CAR (Capital Adequacy Ratio), TAG (Total Asset Growth), NPL (Non Performing Loans), PER (Price Eearning Ratio), PBV (Price Book Value Ratio). Populasi dari penelitian ini adalah bank yang terdaftar di Bursa Efek Indonesia periode tahun 2012-2014. Pengambilan sampel dilakukan dengan menggunakan teknik purposive sampling, hingga diperoleh 25 peristiwa financial distress pada periode penelitian. Penelitian ini menggunakan analisis regresi logistik untuk menguji pengaruh variabel independen terhadap variabel dependen. Hasil penelitian menunjukkan variabel return on asset dan capital adequacy ratio berpengaruh negatif terhadap probabilitas financial distress, sedangkan good corporate governance, loan deposit ratio, total asset growth, non performing loans, price earning ratio, dan price book value ratio tidak berpengaruh secara signifikan terhadap probabilitas financial distress. This research aims to analyze the effect of the variabels to predict Indonesian Banks’s financial distress. Those variabel was chosen by using 5C methods. The 5C methods consist of GCG (Good Corporate Governance), ROA (Return on Asset), LDR (Loan Deposit Ratio),CAR (Capital Adequacy Ratio), TAG (Total Asset Growth), NPL (Non Performing Loans), PER (Price Eearning Ratio), PBV (Price Book Value Ratio). The population of this study was all banks listed in Indonesia Stock Exchange (ISX) in 2012-2014. Sampling is done by using purposive sampling method, until founded that was 25 financial distress phenomena that happens in that periods.This study used logistic regression analysis for testing the influence of independent variables on dependent variable. The results of this study showed return on asset and capital adequacy ratio negative significantly influence to the probability of financial distress, meanwhile good corporate governance, loan deposit ratio, total asset growth, non performing loans, price earning ratio, and price book value ratio had no significantly influence to to the probability of financial distress. Keyword: Financial distress, 5C methods, Financial ratio, bank.

KINERJA RASIO KEUANGAN UNTUK MEMPREDIKSI KONDISI FINANCIAL DISTRESS PADA PERUSAHAAN JASA DI BURSA EFEK INDONESIA PERIODE 2009-2014

Identifying financial distress condition is important because it can be an early warning system before bankcruptcy. This condition can be predicted using models that have developed by many researchers. The purpose of this research is to describe and analyze the effect of the return on assets, current ratio, debt to equity ratio and total asset turnover towards condition of financial distress in service sector listed in Indonesian Stock Exchange (IDX) in the year 2009-2014. The data analysis technique is logistic regression. The sample consist of 60 data observed of the firms with positive earning before tax for the two consecutive years and 60 data observed of the firms with negative earning before tax for the two consecutive years. The result of this research shows thatreturn on asset significantly affects to condition of company financial distress. Whereas debt to equity ratio, current ratio and total asset turnover do not significantly influenceto condition of company financial distress.So, companies should pay attention to productivity in the future to maintain the effectiveness of the management.

Perbandingan Prediksi Financial Distress Menggunakan Model Altman, Grover dan Zmijewski

This research aims to find predictors model of Financial Distress which are the most accurate in predicting the condition of Financial Distress at manufacturing companies. The populations/objects in this research are all of the manufacturing companies that listed on the Indonesia Stock Exchange (known as BEI) in 2014. In this research, the technique of sampling used is Purposive Sampling. The sample of this research totaled 110 manufacturing company . T otal data in the research is 110 annual reports. Methods of analysis used were multiple linear regressions using SPSS program 15 . 00. The results showed that the Model Model Altman, Grover, and Model Zmijewski can be used to predict the condition of F inancial D istress. Between these three models, model Zmijewski is the most accurate model to predict the condition of F inancial D istress at manufacturing companies.

ANALISIS PREDIKSI FINANCIAL DISTRESS SERTA PENGARUHNYA TERHADAP HARGA SAHAM DENGAN STRUKTUR MODAL SEBAGAI VARIABEL INTERVENING (Studi pada Perusahaan Jasa yang Terdaftar di Bursa Efek Indonesia Tahun 2009–2013)

All of investors value that financial distress conditions and the proportion of financial capitalstructure have effect to become fluctuation of stocks price. Therefore, the aim of this research is to know theeffects of financial distress to the stocks’ price either direct or indirect through financial capital structure. Thisresearch uses descriptive quantitative approach by using sector of service listed in BEI year 2009–2013 as theobject. The sampling method used is purposive sampling. There are 23 companies that have categorized assample. The method that used to predict financial distress is z-score Altman method, whereas to analyst thehypothesis is used path analysis through SPSS TEST by consideration of test classic assumption. Based onthe result the research shows that financial distress gives negative impact to the stocks’ price. Financialdistress caused by capital loss so decrease work of money that effect to the decrease stocks price. It might becaused of using financial structure proportion doesn’t cause business risk that will emerge financial Distressuntil it doesn’t moving stocks price. From Altman z-score prediction shows from 23 companies 10 of it (APOL,BIPP BLTA, BTEL, FMII, HITS, IATA, LIMAS, RIMO, and TKGA) include on financial distress category.Meanwhile, 5 companies (BHIT, BKDP BMSR, OKAS, and ZBRA) include on gray area. Furthermore 8 companies(ASIA, BNBR, CENT, ELTY, LCGP, META, TRIL, and TRUB) include in save condition.