Bankruptcy Analysis of Banking Companies in Indonesia Period 2001-2012 (Using the Altman Z-Score Model)

Andi Sanjaya • Lindrianasari Lindrianasari • Aminah Aminah
Journal article International Journal on Economics and Social Sciences • January 2015 Indonesia

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Abstract

The purpose of this study is to provide empirical evidence about the bankruptcy prediction model used by Altman. Research questions were constructed in this study is whether the Altman Z-Score model that built in 1968 can be used and relied upon in accommodating economic climate in Indonesia, especially as a predictor of bankruptcy in Indonesia banking company. Statistical test results showed that the Altman Z-Score model appropriate for use in predicting the potential bankruptcy of the Indonesia banking company on the observation period 2001-2012. By doing so, this study conclude that the Altman Z-Score models can be a tool for predicting bankruptcy in Indonesia.

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International Journal on Economics and Social Sciences

The International Journal on Economics and Social Sciences (IJESS), published every six months, i... see more