Global Study Revolutionizes Bankruptcy Prediction

This study evaluates bankruptcy potential in food and beverage companies listed on the Indonesia Stock Exchange during 2018-2022 using four methods: Grover, Springate, Zmijewski, and Altman. Analyzing data from 31 sampled companies, the research employs descriptive quantitative methods and SPSS 26 analysis. Findings reveal varied bankruptcy predictions: Grover predicts 3 potential bankruptcies, Springate identifies 18, Zmijewski finds none, and Altman predicts 14. Notably, Zmijewski's method demonstrates superior accuracy. These results aid investors in understanding company performance and inform future financial strategies, addressing a critical need in early bankruptcy prediction for the food and beverage industry. Future research may explore additional prediction models and extend the study period to enhance predictive accuracy further. Highlight: Diverse methods: Grover, Springate, Zmijewski, Altman offer varied bankruptcy predictions. Zmijewski's accuracy: Highest accuracy among methods for bankruptcy prediction. Investor insight: Guides future financial decisions based on company performance analysis. Keywoard: Bankruptcy, Food & beverage, Stock Exchange, Analysis, Prediction.

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Publication Details

Journal
Academia Open
Published
2024-08-26
DOI
https://doi.org/10.21070/acopen.9.2024.8191
Primary Topic
Financial Distress and Bankruptcy Prediction
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article
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article

Global Study Revolutionizes Bankruptcy Prediction

Duwi Rahayu, Ervina Indah Ansari
Academia Open
Financial Distress and Bankruptcy Prediction
article

Global Study Revolutionizes Bankruptcy Prediction

Duwi Rahayu, Ervina Indah Ansari
article en

Abstract

This study evaluates bankruptcy potential in food and beverage companies listed on the Indonesia Stock Exchange during 2018-2022 using four methods: Grover, Springate, Zmijewski, and Altman. Analyzing data from 31 sampled companies, the research employs descriptive quantitative methods and SPSS 26 analysis. Findings reveal varied bankruptcy predictions: Grover predicts 3 potential bankruptcies, Springate identifies 18, Zmijewski finds none, and Altman predicts 14. Notably, Zmijewski's method demonstrates superior accuracy. These results aid investors in understanding company performance and inform future financial strategies, addressing a critical need in early bankruptcy prediction for the food and beverage industry. Future research may explore additional prediction models and extend the study period to enhance predictive accuracy further. Highlight: Diverse methods: Grover, Springate, Zmijewski, Altman offer varied bankruptcy predictions. Zmijewski's accuracy: Highest accuracy among methods for bankruptcy prediction. Investor insight: Guides future financial decisions based on company performance analysis. Keywoard: Bankruptcy, Food & beverage, Stock Exchange, Analysis, Prediction.

Academia OpenVol. 9(2)
Universitas Muhammadiyah Sidoarjo (ID)
Openalex Percentile: Top 78%
Financial Distress and Bankruptcy Prediction
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Global Study Revolutionizes Bankruptcy Prediction — Duwi Rahayu, Ervina Indah Ansari · Academia Open (2024) | TGRS Research Map | TGRS