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Penggunaan Binary Logit untuk Prediksi Financial Distress Perusahaan Yang Tercatat Di Bursa Efek Jakarta
[Financial Distress Prediction In Indonesian Stock Exchange]

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  • Pasaribu, Rowland Bismark Fernando

Abstract

This study aimed to establish the financial distress prediction in a public company listed on the Jakarta Stock Exchange specifically incorporated in the trading industry. The samples used in research are all public companies incorporated in the trading industry 2002-2006 period. This study used six initial discriminator and 34 financial ratios as an operational variable. The analysis technique used is a binary logit regression. Empirical result shows that companies that do not create economic value-added, illiquid, low operational efficiency and high levels of financial leverage have a large probability of financial distress.

Suggested Citation

  • Pasaribu, Rowland Bismark Fernando, 2008. "Penggunaan Binary Logit untuk Prediksi Financial Distress Perusahaan Yang Tercatat Di Bursa Efek Jakarta [Financial Distress Prediction In Indonesian Stock Exchange]," MPRA Paper 36980, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36980
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    References listed on IDEAS

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    More about this item

    Keywords

    EVA; financial distress; financial ratios; binary logit;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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