The Prediction of bankruptcy with Altman Z Score in Indonesia’s Bank Umum Sharia period 2007-2011
The Prediction of bankruptcy with Altman Z Score in Indonesia’s Bank Umum Sharia period 2007-2011
Author : WILLY SRI YULIANDARI; DUDI PRATOMO Published on : 2nd International Conference for Emerging Markets (ICEM 2015)(Perbanas Institute - Kuta Bali)
Abstract
“This study aims to test the prediction of insolvency in the banking company with Bank Umum Sharia category, such as Bank Syariah Mandiri, Bank Muamalat Indonesia, dan Bank Mega Syariah.This research is taken because there is no Bank Umum Syaria found bankrupt . The method of Altman Z-score is used to see how big the 2007-2011 period bankruptcy prediction in sharia banking companies by counting each of the bankruptcy prediction on each bank of 3 sharia banks.
The data used in this study is the bank’s annual financial report from data based of Bank Indonesia, because these sharia bank are not listed at Bursa Efek Indonesia . The analysis technique used is the predictive model of Altman Z-score bankruptcy to which it applies the five variables representing liquidity ratios X1, X2 and X3 profitability, activity X4 and X5. It has the formula Z-Score = 0,717X1 + 0,847X2 + 3,107X3 + 0,420X4 + 0,998X5 within the Z-Score assessment criteria> 2.99 is categorized as a very healthy company. 1.81
