WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 19, 2022
The Accuracy of Financial Distress Prediction During the COVID-19 Pandemic on Health Sub Sector Companies
Authors: , , , ,
Abstract: During the recent COVID-19 pandemic, most countries are in a phase of slowing economic growth that causes long-term financial distress and leads to bankruptcy. This paper describes the accuracy of financial distress prediction of the healthcare sub-sector companies using the Altman Modified Z-Score, Springate, and Zmijewski methods. The level of accuracy is determined based on the suitability of the calculation results of the three models with the company’s bankruptcy data published on the Indonesia Stock Exchange and strengthened by the analysis based on the calculation of the type error I and II. Based on the level of accuracy and error types I and II, the Springate is the most accurate method in analyzing the financial distress prediction of the healthcare sub-sector companies with an accuracy rate of 91.4275. Comparing financial performance before and after the COVID-19 pandemic, the mean difference test shows that there is no significant difference in financial performance before and after the COVID-19 pandemic.
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Pages: 1463-1475
DOI: 10.37394/23207.2022.19.132