Application of Altman Z-Score Model and Springate Model to Assess the Symptoms of Corporate Banking (Analysis of Studies in Consumer Companies in the Pharmaceutical Sub Sector Registered on the Indonesia Stock Exchange during the 2014-2017 Period)

Asep Saepudin, Soritaon Siregar

Abstract


The purpose of this study was to examine differences in predictions of symptoms of corporate bankruptcy between the Altman Model and the Springate Model against the symptoms of bankruptcy in the Manufacturing Sector of the Pharmaceutical Sub-sector listed on the Indonesia Stock Exchange during the 2014-2017 period. The research method used is descriptive method. The population in this study were all publicly listed companies on the Indonesia Stock Exchange in 2014 to 2017. Sampling techniques with use of purposive sampling. Based on the sampling criteria, obtained a research sample of 9 pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange during the 2014-2017 period. From the results of the study, the difference between the two is the ratio of the capital market value to the book value of the debt owned by the Altman equation, not owned by the Springate equation. This ratio has a very significant effect because stock prices contribute to the results of the Altman Z-Score model.

Full Text:

PDF


DOI: https://doi.org/10.32535/jicp.v2i1.400

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021 Asep Saepudin, Soritaon Siregar

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Flag Counter

Published by:

AIBPM Publisher

Editorial Office:

JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone:
+62 341 366222
Email: journal.jicp@gmail.com
Website:http://ejournal.aibpmjournals.com/index.php/JICP

Supported by: Association of International Business & Professional Management

If you are interested to get the journal subscription you can contact us at admin@aibpm.org.

ISSN 2622-0989 (Print)
ISSN 2621-993X (Online)

DOI:Prefix 10.32535 by CrossREF

Journal of International Conference Proceedings (JICP) INDEXED:

 

In Process


This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.