Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)

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

Authors
Santi Damayanti
Corresponding Author
Santi Damayanti
Available Online 2 September 2021.
DOI
10.2991/aebmr.k.210831.015How to use a DOI?
Keywords
Altman Z-Score Model Analysis, Zmijewski Model Analysis, Springate Model Analysis, Financial Distress
Abstract

Financial distress has a significant impact on the company that will potentially suffer losses, but also investors, creditors, and communities. There are some tools used to detect bankruptcy, namely Altman Z-Score, Zmijewski, and Springate model. This study uses descriptive and verification methodology. The data used are secondary. The data were collected through library research and documentation retrieval from IDX official website. Purposive sampling methodology was employed to select the sample, and it obtained data from eight pharmaceutical companies. The results showed that the mean of Altman Z-Score was 2.99%, the mean of the Zmijewski model was 3.05%, and the mean of Springate was 1.94%. Moreover, the mean of financial distress was 209.90%. Based on the coefficient of determinations results of 0.198, the results showed that the analysis of Altman Z-Score, Zmijewski, and Springate concerning financial distress had a simultaneous impact of 19.8%. The remaining 80.2% was influenced by other variables outside the regression models, including high raw material expenses, poor financial planning, and poor cash flow management.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
2 September 2021
ISBN
10.2991/aebmr.k.210831.015
ISSN
2352-5428
DOI
10.2991/aebmr.k.210831.015How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Santi Damayanti
PY  - 2021
DA  - 2021/09/02
TI  - Does the Analysis of Altman Z-Score Model, Zmijewski Model, and Springate Model Impact the Financial Distress?
BT  - Proceedings of the 5th Global Conference on Business, Management and Entrepreneurship (GCBME 2020)
PB  - Atlantis Press
SP  - 70
EP  - 72
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210831.015
DO  - 10.2991/aebmr.k.210831.015
ID  - Damayanti2021
ER  -