Open AccessComparison analysis of Altman's and Foster's Z-score model in predicting bankruptcy: evidence from Indonesian automotive and component industries
Author(s) -
Wahyudi Nurmansyah,
Afdal Mazni,
Ferry Febriyanto
Publication year - 2021
Publication title -
dijb (diponegoro international journal of business)
Language(s) - English
Resource type - Journals
eISSN - 2580-4995
pISSN - 2580-4987
DOI - 10.14710/dijb.4.2.2021.126-135
Subject(s) - bankruptcy , nonprobability sampling , bankruptcy prediction , sample (material) , statistics , econometrics , automotive industry , sampling (signal processing) , component (thermodynamics) , test (biology) , psychology , actuarial science , mathematics , business , computer science , engineering , demography , finance , sociology , population , chemistry , chromatography , filter (signal processing) , biology , computer vision , thermodynamics , aerospace engineering , paleontology , physics
The purpose of this study is to determine differences in bankruptcy predictions of the Altman and Foster models. The sampling technique used is purposive sampling with an observation period of 2016-2018 with 12 company samples per year. The analysis technique uses the Altman and Foster method with the paired two-sample t-test as a hypothesis test tool. Based on the results of the Altman and Foster Z- Score model of automotive and component industries in 2016-2018 it can be concluded that the financial model of Altman and Foster can predict bankruptcy. Furthermore, the hypothesis testing found that there is no differences in the results of the Altman and Foster bankruptcy prediction.