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Research Paper | Economics | Indonesia | Volume 4 Issue 12, December 2015 | Popularity: 7.4 / 10

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The Effect of Bankruptcy Prediction Using Ohlson Score Model Towards Stock Returns (Study in Textile and Garment Company Listed in IDX For Year 2010-2014)

Ayu Putri Wulandari, Norita, Aldilla Iradianty

Abstract: The deceleration of Indonesian economics growth seen by the slowdown of GDPs growth has brought a lot of impact in various sector of Industry. One of them are manufacturing Industry, particulary in Textile and Garment industry. It can be seen from the decline of manufacturing companys growth which reached -1, 98 % in the second quarter of 2015, and also the decline of the textile products export trend, as well as a number of textile and garment companies which went bankrupt. Those condition which affect textile and garment companies are the symptomps of impending Financial Distress which is the beginning of Bankruptcy. Bankruptcy can be early predicted by various methods, one of them is Ohlson Score (1980). Besides bankruptcy prediction, another important thing which should be known is investor welfare, which is reflected from stock return. This is the main question of the research, that is how far could Ohlson Score influences stock return. The statistical analysis techniques used are panel data regression method, and Mann Whitney test. This study consists of 7 companies. The result shows that there is a negative influence between ohlson score towards stock return, but not significantly.

Keywords: Financial Distress, Bankruptcy, Ohlson Score, Stock Return

Edition: Volume 4 Issue 12, December 2015

Pages: 1853 - 1858

DOI: https://www.doi.org/10.21275/NOV152403

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