Predicting financial distress probability of Indonesian plantation and mining firms Online publication date: Wed, 26-Jun-2019
by Christianto Tano; Yunieta Anny Nainggolan
International Journal of Trade and Global Markets (IJTGM), Vol. 12, No. 2, 2019
Abstract: We aim to predict financial distress probability of Indonesian firms by employing recent established model and incorporating corporate governance measurements. We examine plantation and mining industry because the growth of these industries has been declining due to the diminishing of commodities price which could provide a case of industries with high financial distress probability. Our findings show that only stock price, stock returns volatility and net income could predict financial distress within one year but not within three year model. We also find that by incorporating the corporate governance measurements, the model goodness-of-fit could be improved. However, we do not find that our corporate governance measures could be used as accurate predictors. Finally, the model shows to be able to predict financial distress of Indonesian plantation and mining firms for the year 2016 with accuracy of 76.920% using cut-off percentage of 0.999%.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Trade and Global Markets (IJTGM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook