Does The Analysis of Altman Z-Score Model, Zmijewski Model, and Springate Model Impact the Financial Distress? (study on pharmaceutical companies listed on the Indonesian Stock Exchange period 2011-2017) Santi Damayanti
Sekolah Tinggi Ilmu Ekonomi Indonesia Membangun(INABA)
santi_dama[at]yahoo.co.id
Abstract
Financial distress has a great impact where not only the Company that will potentially suffer loss, but also investors, creditors, and communities. There are a number of tools used to detect bankruptcy, namely Altman Z-Score Model, Zmijewski Model, and Springate Model. This study uses descriptive and verification methodology. The data used are the secondary data. The data collection was conducted through library research and documentation obtained from the official website of IDX. Purposive sampling methodology is adopted for sample collection and it obtains data of 8 pharmaceutical companies. The results show that the average of Altman Z-Score model analysis is 2.99%, the average of Zmijewski Model analysis is 3.05%, and the average of Springate Model analysis is 1.94%. Meanwhile, the average value of Financial Distress is 209.90%. Based on the coefficient of determinations results of 0.198, the results show that the analysis of Altman Z-Score, Zmijewski, and Springate Models to Financial Distress have a simultaneous impact of 19.8% to Financial Distress, while the remaining 80.2% is influenced by other variables outside the regression models including high raw material expenses, poor financial planning, and poor cash flow management.
Keywords: Altman Z-Score Model Analysis, Zmijewski Model Analysis, Springate Model Analysis, Financial Distress, Bankruptcy.
