Accounthink : Journal of Accounting and Finance

Predicting Bankruptcy of Pharmaceutical Companies Using The Altman Z-Score and Grover Methods

Ina Ratnasari; Nugraha Nugraha, Ihwan Sutardiyanta — Sun, 31 Mar 2024 00:00:00 +0700

The main objective of this study is to evaluate and contrast the effectiveness of two financial distress prediction models to predict bankruptcy, namely Altman Z-Score and Grover. The sampling method used was purposive sampling, where the samples were purposively selected from the population of pharmaceutical companies listed on the Indonesia Stock Exchange (IDX), which was listed in 2018. The results showed that the evaluated predictive models were able to forecast the incidence of financial distress to predict bankruptcy. In terms of accuracy, the Altman Z-Score model stands out as the most effective than the Grove model, with an accuracy rate of 86.67%. It is followed by the Grover model, which occupies the second position with an accuracy rate of 55.56%.

Comparative Analysis of Allowance for Impairment Losses on Credit and Financial Performance Before and After Implementation of PSAK 71 in Banking Listed on The Indonesia Stock Exchange

Anggelia Syahputri, Anggraeni Yunita, Sumiyati Sumiyati — Sun, 31 Mar 2024 00:00:00 +0700

The Financial Accounting Standards Board from the Institute of Indonesia Chartered Accountants issued PSAK 71 on financial Instruments that adopt IFRS 9. Changes in the method of charging allowances for losses in PSAK 71 by using expected credit losses require banks to reserve credit losses from the beginning of the period. This can then impact financial performance, generally measured using financial ratios. This study examines and analyses differences in allowance for credit impairment losses, CAR, ROA, and LDR before and after PSAK 71. The population used in this study are banks listed on the Indonesia Stock Exchange. The sample was based on a purposive sampling technique to obtain as many as 35 banks. The analytical method is a comparative descriptive method, and the analysis technique of the average difference test of two paired samples is used. The results showed that there were significant differences in allowance for credit losses, CAR, ROA, and LDR between before and after the implementation of PSAK 71, which indicates that it has an impact on the amount of reserve for losses formed, capital adequacy bank, profitability, and liquidity risk.

The Influence of Board Character and Institutional Ownership on Operational Risk Disclosure in Sharia Commercial Banks in Indonesia

Sun, 31 Mar 2024 00:00:00 +0700

This research aims to determine the influence of board character as measured by the size of the Sharia supervisory board, the size of the board of commissioners, the size of the board of directors, and institutional ownership. The research was conducted using the Pooled Least Square (PLS) method involving 15 Sharia Commercial Banks in Indonesia in 2017-2021. The results of this study show that the size of the board of directors has a positive effect on operational risk disclosure. In contrast, the size of the sharia supervisory board, the size of the board of commissioners, and institutional ownership do not affect operational risk disclosure. These findings have implications for policymakers and regulators of Islamic commercial banks regarding the development and implementation of the influence of board characteristics and institutional ownership that can improve operational risk disclosure. This research contributes to meeting the needs and increasing understanding of the influence of board character and institutional ownership. This can help Islamic commercial banks engage in effective compliance when carrying out operational risk disclosures.

Analysis of Financial Ratios Against Financial Distress in Pharmaceutical Companies

Anggi Pasca Arnu, Nugraha Nugraha — Sun, 31 Mar 2024 00:00:00 +0700

This research is intended to identify the impact of liquidity, solvency, and profitability ratios on financial distress conditions as measured using the Altman Z-Score model in pharmaceutical sector companies listed on the Indonesia Stock Exchange in the 2019-2022 period, either partially or simultaneously. The analytical method applied involves descriptive analysis, classical assumption testing, multiple linear regression analysis, and hypothesis testing using SPSS version 20 software. The implications obtained from this research indicate that, when analyzed partially, the liquidity ratio with the Current Ratio proxy has no effect On financial distress conditions with a significance value of 0.051. The same thing applies to the profitability ratio with the Return On Assets (ROA) proxy with a significance value of 0.838, which is also concluded to not affect financial distress. However, there is a significant negative effect of the solvency ratio with the Debt to Asset Ratio (DAR) proxy on financial distress with a value of 0.015, which means that the higher the DAR will reduce the Altman Z-Score value which is closer to financial distress conditions. These three ratios, liquidity, solvency, and profitability, influence financial distress.

The Influence of Financial Literacy and Risk Tolerance on Investment Decisions for Millennial Generation Civil Servants (PNS)

Galoeh Irdanella Sekarwangi — Sun, 31 Mar 2024 00:00:00 +0700

Financial products are becoming more varied and common. The proliferation of financial products requires consumers to choose their assets with greater logic and analysis. The capacity to use different financial skills, such as essential money management (budgeting, spending, savings, loans, and credit), financial planning, and investment knowledge, is also equally important in making investment decisions. Factors that influence investment decisions are financial literacy and risk tolerance. This research aims to determine the influence of financial literacy on investment decision-making and to determine risk tolerance for investment decision-making among PNS working in Jakarta. The theories used by researchers are behavioral financial theory and modern portfolio theory. The method used in this research is quantitative, using a questionnaire distributed to target respondents. The analysis technique used is PLS-SEM. The research results state that (1) Financial knowledge has negative results and does not have a significant effect with a p-value of 0.080 > 0.05, (2) Financial attitude has positive results and has a significant effect with a p-value of 0.01 < 0.05, (3) Financial behavior has negative results and has a significant effect with a p-value of 0.035 < 0.05 and (4) Risk tolerance has positive results and has a significant effect with a p-value of 0.050 = 0.05.

Optimizing Financial Performance: A Comprehensive Analysis of PT Astra Agro Lestari Tbk's Liquidity and Solvency

Danang Kusnanto, Zaidan Al Rahman, Muhammad Nur Alam, Nugraha Nugraha — Sun, 31 Mar 2024 00:00:00 +0700

This research examines the financial performance of PT Astra Agro Lestari Tbk, one of Indonesia's largest palm oil producers, during the period of 2018-2022. The primary focus of the study is the analysis of liquidity and solvency ratios, aiming to provide an in-depth understanding of the challenges and opportunities faced by the company in the dynamics of the global market. The research adopts a quantitative descriptive approach, utilizing data from the company's public financial reports. The analysis results reveal fluctuations in the liquidity and solvency of the company. Despite facing challenges in 2019, the company managed to improve its performance. However, it was observed that the company exhibits a high dependency on long-term debt. As a recommendation, this research suggests that the company should formulate a more balanced financial policy to reduce risks and enhance flexibility amid economic uncertainties. These measures are expected to assist the company in navigating market dynamics more effectively and ensuring optimal financial sustainability.

Determinants of The Financial Crisis in Transport and Logistics Sector Companies

Sun, 31 Mar 2024 00:00:00 +0700

This research begins with indications of a financial crisis in several companies that are feared to result in bankruptcy in the future. The research objective is to identify the factors that cause economic crises, including leverage, company activity, market value, sales growth, profitability, and liquidity. The research approach uses quantitative methods, with the population in the form of annual reports of companies in the transportation and logistics sector for five periods (2018 to 2022). The research sample was determined through purposive sampling, so 20 company samples were obtained. Data analysis was carried out using logistic regression analysis with SPSS tools. The results of this study are H1 accepted with a significance value of leverage of 0.038 (sig <0.05). H2 is accepted with a significance value of activity of 0.002 (sig <0.05). H3 is accepted with a significance value of market value of 0.010 (sig <0.05). H4 is accepted with a significance value of revenue growth of 0.035 (sig < 0.05). While H5 is rejected with a significance value of profitability of 0.717 (sig > 0.05). H6 is also dismissed with a significance value of liquidity of 0.055 (sig > 0.05). Meanwhile, H7 is accepted with a significance value of 0.000 (sig < 0.05). Thus, this simultaneously shows that leverage, activity, market value, revenue growth, profitability, and liquidity have an impact on the financial crisis.

The Influence of BOPO, LDR/LFR, and NPL on the Profitability of Core Capital Bank Group (KBMI) 1 Banks During the Covid-19 Pandemic

Ihwan Sutardiyanta, Nugraha Nugraha — Sun, 31 Mar 2024 00:00:00 +0700

This study aims to evaluate the impact of the Operational Costs to Operating Income ratio (BOPO), Loan to Deposit Ratio (LDR), and Non-Performing Loans (NPL) on Profitability, measured through the Return On Assets (ROA) and Net Profit Margin (NPM) ratios of Bank KBMI 1 during the Covid-19 pandemic period spanning from 2020 to 2023. The research encompassed 28 companies affiliated with Bank KBMI 1/BUKU 1 as the population, and 25 companies were chosen as samples using purposive sampling techniques. The analysis was conducted through multiple linear regression on a dataset comprising 75 time series. The findings of the research indicate that: (1) BOPO exhibits a negative and statistically significant influence on profitability, encompassing both ROA and NPM, (2) NPL and LDR/LFR do not wield a significant impact on profitability, be it ROA or NPM. Consequently, in totality, BOPO, LDR/LFR, and NPL collectively contribute to influencing profitability.