MEMPREDIKSI KEGAGALAN BISNIS DI PASAR MODAL. Author : Sri Iswati, M.
Suyunus, dan Tomy. Abstract : The investor expertise in the business failure ...
MEMPREDIKSI KEGAGALAN BISNIS DI PASAR MODAL Author : Sri Iswati, M. Suyunus, dan Tomy Abstract : The investor expertise in the business failure predicting is an essential factor to attain success in stock exchange. One of the effective way before executing an investment in this respect is to grouping the industry into two categories; financial distress and non-financial distress. The investors are also be able to protect the investment security that has been invested by conducting the analysis toward company’s performance to detect an early indication of financial distress which can cause business failure. In this research, prediction has been done by employing fundamental analysis, in more specific, discriminant analysis in which the quantitative approach is preferred. The degree of significance is =5%. The objectives of the research are, firstly, to test the contribution of financial ratios to predict in which category the companies are in; financial distress or non-financial distress. Secondly, to test whether there is financial ratios diversity between the companies in financial distress category and non-financial distress category. The research has proved the first hyphotesis. As a result, financial ratios can be used to predict the categories of financial distress and non-financial distress company. Only a few ratios of nine financial ratios under the study are able to distinguish the company in financial distress category or non-financial distress category. Statistically, only three financial ratios; indebtedness, leverage, and return on investment, are able to distinguish the category of the companies. (end)
