WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 21, 2024
Predicting and Comparing Bankruptcy Models in Indonesian Real Estate Companies
Authors: , , , , ,
Abstract: This presents the assessment of a real estate bankruptcy risk, and the purpose of its consideration is to demonstrate the effectiveness in predicting companies in Indonesia that are vulnerable to bankruptcy during the pandemic. This is important to provide predictions of company bankruptcy during the pandemic period, and so far, no research has accommodated a similar selection. Empirical research analyzed financial data from 28 observations of real estate companies in Indonesia from 2019 to 2022. The time frame allows for identifying and assessing the effectiveness of early warning models, especially during pandemic turmoil. The analysis methods used are the Z-Score, S-Score, X-Score, G-Score, and O-Score. The best bankruptcy model in the real estate sector is the X-Score. The contribution of this research is that the type of bankruptcy model specification cannot be generally applied to various companies, specifically the real estate industry. We suggest using the X-Score to predict bankruptcy alarms as one of its instruments.
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Keywords: Bankruptcy, Predicting Bankruptcy, Bankruptcy Models, Real Estate Companies, Pandemic Period, X-Score, forecasting Bankruptcy, bankruptcy prediction
Pages: 2124-2135
DOI: 10.37394/23207.2024.21.175