| Summary: | The purpose of this research is to test whether prediction model
analysis of Altman�s, Wang and Campbell�s, and Springate�s can be used to
predict precisely which company is delisted from Indonesia Stock Exchange
(IDX) due to financial distress.
The sample of this research are every company that has been
delisted forcefully due to financial distress. Those samples will be compared
with ten other companies that are listed in the same industry and have the
similar value of assets. Furthermore, those companies that have been
delisted before will be compared with every company that are listed in the
same industry.
After being identified, every information about the companies that
have been delisted forcefully from IDX will be calculated using Altman�s,
Wang and Campbell�s, and Springate�s formula to specify its cut off.
The prediction results of those models will be compared with the
actual condition using chi-square. Each of Altman�s model, Wang and
Campbell�s model, and also Springate�s model show significant results to
predict the company that has been delisted due to financial distress.
The result of this research can be a reference to enrich reader�s
knowledge related to prediction of financial distress, also to give useful
information that those prediction models can be used in Indonesia.
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