Retail Business Health That Go Public in Indonesia Stock Exchange Enters the Era of Industrial Revolution 4.0

DOI

10.2991/aebmr.k.210311.013How to use a DOI?

Keywords

Company bankruptcy, industrial revolution era 4.0 Altman Z- Score Method, Grover G-Score Method

Abstract

This study aims to determine the potential for bankruptcy due to the ongoing industrial revolution 4.0 and the difference in potential bankruptcy of retail companies in Indonesia which are listed on the Indonesia Stock Exchange for the publication of financial statements for the 2016-2018 financial year. The research sample used was 14 companies with purposive judgment sampling method. The data collection technique uses the documentation method, namely data collection from the Indonesia Stock Exchange documents. The data analysis technique used in this research is descriptive data analysis using the Altman Z-Score and Grover G-Score models.The criteria for company bankruptcy used the Altman method based on the Z-Score limit and with the criteria, if Z <1.8, the company is included in the bankrupt be careful, then if the Z value>2.99 then the company is in the healthy category. category, if the Z value> 1.81 to<2.99 is included in the Gray Area category or situation. Criteria based on Grover’s G-Score, if the value of G ≤ -0.02 then the company is included in the bankrupt category, and if the value of G ≥ 0.01 then the company is included in the healthy category. The results of this study indicate that there is a significant difference at the 5% significance level, from the number of issuers that go bankrupt calculated by the Althman method and the Grover method. The results of the analysis using the Altman Z-Score method in 2016 showed that 39% of companies are in a healthy condition, 34% of companies are in a cautious condition, 27% of companies are in bankruptcy. In 2017, 46% of the companies were in a healthy condition, 27% of the companies were in a prudent condition, 27% of the companies were in bankruptcy. In 2018, 45% of companies were in good health, 30% were in a prudent condition, and 25% were in bankruptcy. So the number of retail companies with the potential for bankruptcy decreased at the start of the industrial revolution 4.0 era. The results of the analysis using the Grover method show that in 2016 there were 89% of companies in good health, and 11% of companies were in bankruptcy. In 2017, 89% of companies were in good health, and 11% were in bankruptcy. In 2018, 82% of the companies were in good health, and 18% of the companies were in bankruptcy. Based on the Grover method, it is found that an increase in the number of retail companies that have the potential to go bankrupt.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Basri Basri
AU  - Fery Kuswantara
AU  - Fikri Budi Aulia
PY  - 2021
DA  - 2021/03/13
TI  - Retail Business Health That Go Public in Indonesia Stock Exchange Enters the Era of Industrial Revolution 4.0
BT  - Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)
PB  - Atlantis Press
SP  - 63
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210311.013
DO  - 10.2991/aebmr.k.210311.013
ID  - Basri2021
ER  -