Company Bankruptcy Prediction Coal Mining Sector Listed on the Indonesia Stock Exchange and Its Impact on Stock Prices

  • Erik Priambodo Universitas Mercu Buana, Indonesia
  • Augustina Kurniasih Universitas Mercu Buana, Indonesia
Keywords: Z-Score, Bankruptcy, Altman, Stock Price.

Abstract

This study aims to prove whether coal mining sector companies have the potential to go bankrupt if measured using the Altman Z-Score model. The study also analyzed the effect of the components of financial ratios in the Altman Z-Score model on stock prices. The research sample is 17 coal mining companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The results of the calculation of the Z-Score value show that several coal mining companies have the potential to go bankrupt. Using the panel data regression approach, it was found that the Z-Score value had a significant effect on stock prices. Partially, the EB/TA ratio has a significant effect on stock prices. The ratios of WC/TA, RE/TA, and MVE/BVL have no significant effect on stock prices.

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Published
2021-07-06
How to Cite
Priambodo, E., & Kurniasih, A. (2021). Company Bankruptcy Prediction Coal Mining Sector Listed on the Indonesia Stock Exchange and Its Impact on Stock Prices. International Journal of Science and Society, 3(3), 95-106. https://doi.org/10.200609/ijsoc.v3i3.356