Comparison with other models

Oct 13, 2025 by talynt.org 115 views

The Ability of Altman Z-Score Model, Zmijewski Model, Sprihane Model, and Grover Score Model in Predicting Delisting (Study of Property and Real Estate Subsector registered in the 2017-2019 IDX)

Introduction

The ability of a company to predict delisting is a crucial aspect of investment decision-making. In the property and real estate subsector, companies face high volatility, making it essential to have accurate models to predict delisting. This study aims to identify the most effective delisting prediction model for companies listed in the Property and Real Estate Subsector on the Indonesia Stock Exchange (IDX) using four prediction models: Altman Z-Score, Zmijewski, Sprihane, and Grover Score. The research object includes 38 companies in the subsector registered on the IDX in the period 2017 to 2019.

Methodology

The methodology used in this study includes secondary data collection through documentation and literature studies, as well as descriptive statistical analysis. In addition, this study also applied purposive sampling techniques, Kolmogorov-Smirnov test one sample, Kuskal-Wallis H test, and testing of accuracy levels. The data collected includes financial statements of the companies listed in the property and real estate subsector on the IDX.

Analysis and Explanation

From the results of the study, the Zmijewski model was proven to be the most accurate model in predicting delisting, with an accuracy level of 98.25%. This figure shows that this model is very effective in identifying the risks faced by companies in the property and real estate subsector. The Zmijewski model uses three main financial ratios: profitability, liquidity, and leverage. This model is specifically designed to predict the possibility of bankruptcy, so that it becomes very relevant in the context of delisting.

Why Zmijewski Model?

The Zmijewski model is a comprehensive model that considers various aspects of a company's financial health. By using three main financial ratios, the model can provide a more accurate picture of a company's financial health. This is particularly important in the property and real estate subsector, where companies face high volatility and are more likely to experience financial difficulties.

Comparison with other models

Altman Z-Score Model: Although famous and often used in many studies, this model is more focused on larger companies and may be less precise for smaller subsectors such as property and real estate in Indonesia. The Altman Z-Score model uses five financial ratios to predict the possibility of bankruptcy, but it may not be as effective in predicting delisting in the property and real estate subsector.
SPRIHANE MODEL: This model is also effective, but has weaknesses in terms of complexity of the variables used, so that it requires a deeper understanding to be interpreted correctly. The Sprihane model uses a combination of financial ratios and non-financial variables to predict delisting, but it may be more difficult to interpret and apply in practice.
Grover Score Model: This model is not as popular as other but still provides valuable insight. However, its effectiveness in the context of delisting still needs to be further investigated. The Grover Score model uses a combination of financial ratios and non-financial variables to predict delisting, but it may not be as effective as other models in predicting delisting in the property and real estate subsector.

Conclusion

This study shows the importance of using the right model in predicting delisting, especially in the property and real estate subsectors that face high volatility. The results obtained from this study made a significant contribution to investors and stakeholders in making better investment decisions. Zmijewski Model, with high accuracy, can be a very useful tool to anticipate risk and keep the investment portfolio safe. Thus, it is essential for analysts and investors to not only depend on one model, but also consider various approaches to get a more complete picture of the risks that the company may face.

Recommendations

Based on the results of this study, the following recommendations can be made:

Investors and stakeholders should use the Zmijewski model as a tool to predict delisting in the property and real estate subsector.
Analysts and investors should consider various approaches to get a more complete picture of the risks that the company may face.
Further research should be conducted to investigate the effectiveness of other models in predicting delisting in the property and real estate subsector.

Limitations

This study has several limitations, including:

The study only considered 38 companies in the property and real estate subsector registered on the IDX in the period 2017 to 2019.
The study only used four prediction models, and further research should be conducted to investigate the effectiveness of other models.
The study only considered financial statements of the companies listed in the property and real estate subsector, and further research should be conducted to investigate the effectiveness of other variables in predicting delisting.

Future Research Directions

Based on the results of this study, the following future research directions can be suggested:

Investigate the effectiveness of other models in predicting delisting in the property and real estate subsector.
Investigate the effectiveness of other variables in predicting delisting, such as non-financial variables.
Conduct a longitudinal study to investigate the effectiveness of the Zmijewski model in predicting delisting over a longer period of time.

Conclusion

In conclusion, this study shows the importance of using the right model in predicting delisting, especially in the property and real estate subsectors that face high volatility. The results obtained from this study made a significant contribution to investors and stakeholders in making better investment decisions. Zmijewski Model, with high accuracy, can be a very useful tool to anticipate risk and keep the investment portfolio safe.
Q&A: The Ability of Altman Z-Score Model, Zmijewski Model, Sprihane Model, and Grover Score Model in Predicting Delisting

Q: What is the purpose of this study?

A: The purpose of this study is to identify the most effective delisting prediction model for companies listed in the Property and Real Estate Subsector on the Indonesia Stock Exchange (IDX) using four prediction models: Altman Z-Score, Zmijewski, Sprihane, and Grover Score.

Q: What are the key findings of this study?

A: The key findings of this study are:

The Zmijewski model was proven to be the most accurate model in predicting delisting, with an accuracy level of 98.25%.
The Zmijewski model uses three main financial ratios: profitability, liquidity, and leverage.
The Altman Z-Score model is more focused on larger companies and may be less precise for smaller subsectors such as property and real estate in Indonesia.
The Sprihane model is also effective, but has weaknesses in terms of complexity of the variables used.
The Grover Score model is not as popular as other but still provides valuable insight.

Q: Why is the Zmijewski model more effective in predicting delisting?

A: The Zmijewski model is more effective in predicting delisting because it uses three main financial ratios: profitability, liquidity, and leverage. This model is specifically designed to predict the possibility of bankruptcy, so that it becomes very relevant in the context of delisting.

Q: What are the limitations of this study?

A: The limitations of this study are:

The study only considered 38 companies in the property and real estate subsector registered on the IDX in the period 2017 to 2019.
The study only used four prediction models, and further research should be conducted to investigate the effectiveness of other models.
The study only considered financial statements of the companies listed in the property and real estate subsector, and further research should be conducted to investigate the effectiveness of other variables in predicting delisting.

Q: What are the implications of this study for investors and stakeholders?

A: The implications of this study for investors and stakeholders are:

Investors and stakeholders should use the Zmijewski model as a tool to predict delisting in the property and real estate subsector.
Analysts and investors should consider various approaches to get a more complete picture of the risks that the company may face.
Further research should be conducted to investigate the effectiveness of other models in predicting delisting in the property and real estate subsector.

Q: What are the future research directions based on this study?

A: The future research directions based on this study are:

Investigate the effectiveness of other models in predicting delisting in the property and real estate subsector.
Investigate the effectiveness of other variables in predicting delisting, such as non-financial variables.
Conduct a longitudinal study to investigate the effectiveness of the Zmijewski model in predicting delisting over a longer period of time.

Q: What are the practical implications of this study for companies listed in the property and real estate subsector?

A: The practical implications of this study for companies listed in the property and real estate subsector are:

Companies should use the Zmijewski model as a tool to predict delisting and take necessary steps to mitigate risks.
Companies should consider various approaches to get a more complete picture of the risks that the company may face.
Companies should conduct regular financial analysis and monitoring to identify potential risks and take necessary steps to mitigate them.

Q: What are the contributions of this study to the existing literature?

A: The contributions of this study to the existing literature are:

This study provides new insights into the effectiveness of different models in predicting delisting in the property and real estate subsector.
This study contributes to the existing literature by providing a comprehensive analysis of the Zmijewski model and its effectiveness in predicting delisting.
This study provides a framework for investors and stakeholders to use in predicting delisting and making informed investment decisions.