The “Big Three” To Predict Financially Distressed Firms Before the Pandemic

  • Resi Ariyasa Qadri The Ministry of Finance, Indonesia
  • Ika Mutiara Khadijah The Ministry of State-Owned Enterprise, Indonesia
  • Beta Andri Anggiano Uliansyah The Ministry of Finance, Indonesia

Abstract

This research aims to foresee financial difficulties in the agricultural industry using three prominent variables: profitability, operating leverage, and liquidity insolvency, before the pandemic. The research employed the documentation technique as the main data collection method. The purposive sampling technique was conducted to obtain the distressed and non-distressed companies during the 2017-2019 period. Multiple discriminant analysis was employed as the data analysis method. Our study reveals that the “big three” factors of profitability, operating leverage, and liquidity insolvency are all capable of differentiating between businesses that are in financial crisis and those that are not. With a model accuracy of 85.700 percent, the “big three” factors can also serve as the determining variables in the discriminant function with profitability as the most influential variable.


Keyword: Multiple Discriminant Analysis; Financial Distress; Profitability; Operating Leverage; Liquidity Insolvency

Downloads

Download data is not yet available.

References

Anggraeni, A., Priantinah, D., & Shaikh, M. (2021). Analysis Of The Effect Of Financial Performances And Macroeconomic Indicators To Financial Distress. Journal of Contemporary Issues in Business and Government, 27(1), 2315–2325. https://cibg.org.au/

Batubara, J. (2017). Paradigma Penelitian Kualitatif dan Filsafat Ilmu Pengetahuan dalam Konseling. Jurnal Fokus Konseling, 3(2), 95. https://doi.org/10.26638/jfk.387.2099

Chen, C., Kim, J. B., & Yao, L. (2017). Earnings smoothing: Does it exacerbate or constrain stock price crash risk? Journal of Corporate Finance, 42, 36–54. https://doi.org/10.1016/j.jcorpfin.2016.11.004

Darmayanti, N., Mildawati, T., & Susilowati, F. D. (2021). Dampak Covid-19 Terhadap Perubahan Harga Dan Return Saham. Ekuitas: Jurnal Ekonomi Dan Keuangan, 4(4). https://doi.org/10.24034/j25485024.y2020.v4.i4.4624

Dinarjto, A., & Kusumaningtyas, A. W. (2020). The effect of central government spending on public services, defense, health, education, economic, and social protection functions on economic growth Agung. In A. Solikin, Y. Hadiwibowo, B. Setiawan, A. Firmansyah, & H. D. Mulyaningsih (Eds.), Public Sector Accountants and Quantum Leap: How Far We Can Survive in Industrial Revolution 4.0? (1st ed., pp. 296–301). Routledge.

Fatmawati, A., & Wahidahwati. (2017). Faktor-Faktor yang Mempengaruhi Financial Distress (Studi Pada Perusahaan Manufaktur di BEI). Jurnal Ilmu Dan Riset Akuntansi, 6(10).

Fauzan, H., & Sutiono, F. (2017). Perbandingan Model Altman Z- Score , Zmijewski , Springate , dan Grover Dalam Memprediksi Kebangkrutan Perusahaan Perbankan (Studi Kasus Pada BEI Tahun 2011-2015). Jurnal Online Insan Akuntansi, 2(1), 49–60.

Ginting, S., & Tarihoran, A. (2017). Faktor-Faktor yang Mempengaruhi Pernyataan Going Concern. Jurnal Wira Ekonomi Nasional, 7(1), 9–20.

Hadi, S., & Anggraeni, A. (2008). Pemilihan Prediktor Delisting Terbaik ( Perbandingan Antara the Zmijewski Model , the Altman Model , Dan the Springate Model ). Jurnal Auditing Dan Akuntansi Indonesia, 12(2), 1–9.

Hendra, Afrizal, & Diah, E. (2018). Faktor-Faktor yang Mempengaruhi Financial Distress (Studi Empiris Pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Periode 2014-2016). Jurnal Akuntansi Dan Keuangan UNJA, 3(2460–6235), 64–74.

Komarudin, Syafnita, & Ilmiani, A. (2019). Analisis Komparasi Prediksi Financial Distress Metode Grover, Altman, Springate, Zmijewski, dan Ohlson Pada Perusahaan Pertambangan di BEI. Jurnal Ekonomi Dan Bisnis, 22(2), 36–44. https://www.jurnal.unikal.ac.id/index.php/jebi/article/viewFile/991/734

Koto, M., Pulungan, D., & Hartini, T. (2018). Metode Springate Dalam Analisa Potensi Kebangkrutan Perusahaan Properti Indonesia. Jurnal Ilmu & Riset Akuntansi.

Kusumaningrum, S. I. (2019). Pemanfaatan Sektor Pertanian Sebagai Penunjang Pertumbuhan Perekonomian Indonesia. Jurnal Transaksi, 11(1979-990X), 80–89.

Maffei, M., Fiondella, C., Zagaria, C., & Zampella, A. (2020). A multiple discriminant analysis of the auditor’s going concern opinion: the case of audit opinions in Italy. Meditari Accountancy Research, 28(6), 1179–1208. https://doi.org/10.1108/MEDAR-06-2019-0514

Masdupi, E., Tasman, A., & Davista, A. (2018). The Influence of Liquidity , Leverage and Profitability on Financial Distress of Listed Manufacturing Companies in Indonesia. 57(Piceeba), 223–228.

Merkusiwati, N. K. L. A. (2014). Pengaruh Mekanisme Corporate Governance, Likuiditas, Leverage, Dan Ukuran Perusahaan Pada Financial Distress. E-Jurnal Akuntansi Udayana, 7 (1)(2302–8556), 93–106.

Mutiarahim, N. (2019). Pengaruh current ratio, debt to equity ratio, return on investment, investment opportunity set dan firm size terhadap dividend payout ratio pada perusahaan yang termasuk dalam Jakarta Islamic Index selama periode 2012–2016. Ultima Accounting : Jurnal Ilmu Akuntansi, 11(2), 160–179. https://doi.org/10.31937/AKUNTANSI.V11I2.1434

Nabila, D. (2020). Linear Discriminant Analysis Dalam Memprediksi Financial Distress Perbankan Syariah di Indonesia Periode 2011-2018.

Nurfauzi, R., & Firmansyah, A. (2018). Managerial Ability, Management Compensation, Bankruptcy Risk, Tax Aggresiveness. Media Riset Akuntansi, Auditing & Informasi, 18(1), 75–100. https://doi.org/10.25105/mraai.v18i1.2775

Pane, R. A., Husaini, A., & Topowijono. (2015). Analisis Diskriminan Untuk Memprediksi Kebangkrutan Perusahaan (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2011-2013). Jurnal Administrasi Bisnis, 27(2), 1–8.

Permana, R. K., Ahmar, N., & Djaddang, S. (2017). Prediksi Financial Distress pada Perusahaan Manufaktur di Bursa Efek Indonesia. Jurnal Bisnis Dan Manajemen, 7((2)), 149–166. https://doi.org/10.15408/ess.v7i2.4797

Priliyastuti, N., & Stella, S. (2017). Pengaruh Current Ratio, Debt To Asset, Debt To Equity, Return on Assets dan Price Earnings Ratio terhadap Harga Saham. Jurnal Bisnis Dan Akuntansi, 19(5), 320–324.

Primasari, N. S. (2017). Analisis Altman Z-Score, Grover Score, Springate, Dan Zmijewski Sebagai Signaling Financial Distress (Studi Empiris Industri Barang-Barang Konsumsi Di Indonesia). Accounting and Management Journal, 1(1).

Purwanti, E. (2016). Analisis Perbedaan Model Altman Z-Score dan Model Springate dalam Memprediksi Kebangkrutan Pada Perusahaan Pertambangan di Indonesia (Studi Empiris Pada Perusahaan Pertambangan Yang Terdaftar Pada Bursa Efek Indonesia Tahun 2010-2014). Jurnal STIE Semarang, 8(2), 23–39.

Rahman, R. A., & Masngut, M. Y. (2014). The Use of “CAMELS” in Detecting Financial Distress of Islamic Banks in Malaysia. Journal of Applied Business Research, 30(2), 445–452. https://doi.org/https://doi.org/10.19030/jabr.v30i2.8416

Rokhmana, C. A. (2015). The Potential of UAV-based Remote Sensing for Supporting Precision Agriculture in Indonesia. Procedia Environmental Sciences, 24, 245–253. https://doi.org/10.1016/j.proenv.2015.03.032

Salim, N. (2018). Analisis Diskriminan Untuk Memprediksi Kebangkrutan Perusahaan (Studi Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2012-2016). Universitas Islam Negeri Alauddin.

Sari, A. Q., Sukestiyarno, Y. L., & Agoestanto, A. (2017). Batasan Prasyarat Uji Normalitas Dan Uji Homogenitas Pada Model Regresi Linear. Unnes Journal of Mathematics, 6(2), 168–177. https://doi.org/10.15294/ujm.v6i2.11887

Wakhidah, S. R., Rahayu, S. M., & Topowijono. (2014). Penerapan Analisis Diskriminan Sebagai Alat Untuk Memprediksi Kebangkrutan Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2009-2013. Jurnal Administrasi Bisnis, 15(1), 1–10.

Wardani, D. K., & Wahyuningtyas, W. (2018). Good Corporate Governance Sebagai Pemoderasi Pengaruh Asimetri Informasi Pada Manajemen Laba. Kajian Bisnis STIE Widya Wiwaha, 26(1), 69–81. https://doi.org/10.32477/jkb.v26i1.265

Wardayani, & Maksum, A. (2020). Analisis Potensi Kebangkrutan : Perbandingan Model Altman dengan Zavgren. Jurnal Perspektif, 9 (2)(447–452).
Published
2023-02-26
How to Cite
QADRI, Resi Ariyasa; KHADIJAH, Ika Mutiara; ULIANSYAH, Beta Andri Anggiano. The “Big Three” To Predict Financially Distressed Firms Before the Pandemic. E-Jurnal Akuntansi, [S.l.], v. 33, n. 2, p. 455-469, feb. 2023. ISSN 2302-8556. Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/90805>. Date accessed: 28 mar. 2024. doi: https://doi.org/10.24843/EJA.2023.v33.i02.p12.
Section
Artikel