Application of Altman Modified Z-Score to Predict Financial Distress in the Indonesian Telecommunications Industry

Rianti Fifriani, Perdana Wahyu Santosa

Abstract


Bankruptcy prediction is needed to assess the prospect of going concern and sustainability of the corporations in the future. This study aims to predict the bankruptcy of corporates with the Altman Z-Score Modification model in the telecommunications industry in Indonesia. The data used are the financial statements of the telecommunications industry that listing on the Indonesia Stock Exchange for the period 2011-2015. Samples for this study uses purposive sampling according to company criteria. The results of the study using the Altman Z-score modification method found two potentially bankrupt companies, namely Bakrie Telecom, Tbk, and Smartfren, Tbk. While Indosat, Tbk, and XL Axiata, Tbk have high financial distress potential due to liquidity and profitability problems that tend to weaken. Meanwhile, Telkom Indonesia, Tbk, and Infracom Inovisi financial concessions are relatively healthy and have the right business expectations

Full Text:

PDF


DOI: https://doi.org/10.33476/j.e.b.a.v4i1.1236

Refbacks

  • There are currently no refbacks.


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

Alamat Penyunting:
Program Studi Magister Manajemen
Sekolah Pascasarjana Universitas YARSI
Jl. Letjen Soeprapto, Cempaka Putih, Jakarta- Indonesia 10510
Telp. (021) 4206674, 4206675, 4206676, Fax, No. (021) 4243171

Flag Counter

Lisensi Creative Commons
JEBA (Journal of Economics and Business Aseanomics) is licensed under a Lisensi Creative Commons Atribusi 4.0 Internasional