Analysis Z-score to Predict Bankruptcy in Banks Listed in Indonesia Stock Exchange

Muammar Khaddafi, Falahuddin, Mohd. Heikal and Ayu Nandari
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Muammar Khaddafi: Department of Accounting, Faculty of Economics, Universitas Malikussaleh, Lhokseumawe, Indonesia,
Falahuddin: Department of Accounting, Faculty of Economics, Universitas Malikussaleh, Lhokseumawe, Indonesia,
Mohd. Heikal: Department of Management, Faculty of Economics, Universitas Malikussaleh, Lhokseumawe, Indonesia,
Ayu Nandari: Department of Accounting, Faculty of Economics, Universitas Malikussaleh, Lhokseumawe, Indonesia.

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 3, 326-330

Abstract: This study aimed to test the predictions of bankruptcy in the banking companies listed in the Indonesia Stock Exchange using the Altman Z-score to see how big the bankruptcy prediction during period of 2011-2013 in the banking Industry. Calculating each bank's bankruptcy prediction on each 29 banks institution. The data used in this study is the annual financial statements that are Exchange Indonesia. The analysis technique used is a bankruptcy prediction model Altman Z-score. By using the formula Z-score = 1.2X1 + 1.4 X2 + 3.3X3 + 0.6 + 1.0 X4 X5. The criteria for assessing a Z-score > 2.99 categorized as a very healthy company. 1.81

Keywords: Altman Z-score; Bankruptcy; Stock Exchange (search for similar items in EconPapers)
JEL-codes: G1 G3 G33 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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