ARTICLE
TITLE

Comparative Analysis of Modified Altman Z-Score, Springate, Zmijewski, Bankometer, Grover, and RGEC Models for Financial Distress Prediction (Empirical Study in Banking Companies Listed on IDX 2011-2016)

SUMMARY

This study aimed at determining the prediction of financial distress in banking sector companies listed on the Indonesia Stock Exchange (IDX) with the research period of 2011-2016. This study utilized a quantitative approach. Determination of the sample was done by purposive sampling technique. The number of research samples consisted of 30 banking companies. The data analysis technique used was descriptive data analysis of each financial distress prediction model. The prediction models included Modified Altman Z-Score, Springate, Zmijewski, Bankometer, Grover, and RGEC. The results showed that (1) Modified Altman Z-Score analyzed that 16 samples were in the gray area criteria and 14 samples were in the bankrupt criteria (2) Springate analyzed 30 samples in the bankrupt criteria (3) Zmijewski analyzed 30 samples in the bankrupt criteria (4 ) Bankometer analyzed 30 samples in very healthy criteria (5) Grover analyzed 1 sample in gray area criteria and 29 samples in non-bankrupt criteria (6) RGEC analyzed 14 samples in very healthy criteria, 15 samples in healthy criteria, and 1 sample in the criteria of fairly healthy (7) The comparison between the results of the analysis of all models showed that the Modified Altman Z-Score, Springate, and Zmijewski models analyzed all samples included in the distress category. On the other hand, Bankometer, Grover, and RGEC models analyzed all samples included in the non-distress category.

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