Published: 2026-07-01

Analysis of the Z-Score Model in Predicting Financial Distress and Its Impact on Firm Value

DOI: 10.35870/emt.v10i3.6895

Virnanda Nur Aini Tridara
  • Virnanda Nur Aini Tridara: Universitas Negeri Surabaya
No Cover Available
Article Metrics
Share:

Abstract

This study aims to examine the effect of financial distress, measured using the Altman Z-Score model, on the value of the firm in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2022-2024. The value of the firm is proxied by Tobin's Q ratio. This study uses a quantitative approach with secondary data in the form of annual financial reports. The sampling technique used purposive sampling, resulting in 53 companies with a total of 159 observations. The results show that the Altman Z-Score has a positive and significant effect on the value of the firm. This finding indicates that healthier financial conditions increase investor confidence and the market value of the company. Thus, the Altman Z-Score model is relevant as a tool for predicting financial distress and as a basis for decision-making.

Keywords

Altman Z-Score; Financial Distress; Value of The Firm; Tobin's Q

Peer Review Process

This article has undergone a double-blind peer review process to ensure quality and impartiality.

Indexing Information

Discover where this journal is indexed at our indexing page.

Open Science Badges

This journal supports transparency in research and encourages authors to meet criteria for Open Science Badges.

How to Cite

Tridara, V. N. A. (2026). Analysis of the Z-Score Model in Predicting Financial Distress and Its Impact on Firm Value. Jurnal EMT KITA, 10(3), 1340-1347. https://doi.org/10.35870/emt.v10i3.6895
Article Information

This article has been peer-reviewed and published in the Jurnal EMT KITA. The content is available under the terms of the Creative Commons Attribution 4.0 International License.

  • Issue: Vol. 10 No. 3 (2026)

  • Section: Articles

  • Published: 2026-07-01

AI Research Hub

This article is indexed and available through various AI-powered research tools and citation platforms. Our AI Research Hub ensures that scholarly work is discoverable, accessible, and easily integrated into the global research ecosystem.

Semantic Scholar Scite Dimensions Connected Papers
Scholarly Connection Platforms
Dimensions Dimensions Connected Papers Connected Papers Scite Scite Google Scholar Google Scholar Semantic Scholar Semantic Scholar Garuda Garuda Scilit Scilit Crossref Crossref BASE BASE Zenodo Zenodo Unpaywall Unpaywall OpenCitations OpenCitations
Author Biographies
Virnanda Nur Aini Tridara, Universitas Negeri Surabaya
Google Scholar ResearchGate ORCID

Accounting Study Program, Faculty of Economics and Business, Universitas Negeri Surabaya, Surabaya City, East Java Province, Indonesia.

References
  • Altman, E. I. (2007). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance, 23(4), 589–609.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Brigham, E. F., & Houston, J. F. (2019). Dasar-dasar manajemen keuangan (4th ed.). Salemba Empat.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Cintyarani, S., & Indrawati, N. K. (2024). Prediksi financial distress dengan model Altman Z-Score dan model Zmijewski X-Score selama pandemi Covid-19. Jurnal Management Risiko Dan Keuangan, 3(4), 385–394.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Connelly, B. L., Certo, S. T., Reutzel, C. R., DesJardine, M. R., & Zhou, Y. S. (2025). Signaling theory: State of the theory and its future. Journal of Management, 55(1), 24–61.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Curry, K., & Banjarnahor, E. (2018). Financial distress pada perusahaan sektor properti go public di Indonesia. Seminar Nasional Pakar Ke 1. Universitas Trisakti.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Destriwanti, O., Sintha, L., Bertuah, E., & Munandar, A. (2022). Analyzing the impact of Good Corporate Governance and Financial Performance on predicting Financial Distress using the modified Altman Z Score model. American International Journal of Business Management (AIJBM), 5(2), 27-36.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Elewa, M. M. (2022). Using altman Z-score models for predicting financial distress for companies–the case of Egypt panel data analysis. Alexandria Journal of Accounting Research, 6(1), 1-28.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Fama, E. (1970). Efficient capital market: A review of theory and empirical work. Journal of Finance, 25, 382–417. https://doi.org/10.2307/2325486.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Ghozali. (2018). Aplikasi analisis multivariante dengan program IBM SPSS 25. Badan Penerbit Universitas Diponogoro.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Hamzah, R. S., & Annisa, M. L. (2022). Altman’s Z-scores for financial distress predictions among food and beverages industry in Indonesia. Owner: Riset Dan Jurnal Akuntansi, 6(1), 1056–1068.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Hotchkiss, E., Thorburn, K. S., & Wang, W. (2023). The changing face of Chapter 11 bankruptcy: Insights from recent trends and research. Annual Review of Financial Economics, 15(1), 351–367.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Corporate Governance: Values, Ethics and Leadership, 77–112.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Kristanti, F. T. (2019). Financial distress: Teori dan perkembangannya dalam intelegensia media. Intelegensia Media.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Lang, L. H. P., Stulz, R., & Walkling, R. A. (1989). Managerial performance, Tobin’s Q, and the gains from successful tender offers. Journal of Financial Economics, 24(1), 137–154.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
  • Wijayanti, O., & Ratih, S. (2022). Prediction of financial distress model Altman Z-Score (Study on shipping companies listed on the Indonesia Stock Exchange for the 2019–2021 period). Daengku: Journal of Humanities and Social Sciences Innovation, 2(6), 777–789. https://doi.org/10.35877/454ri.daengku1250.
    Google Scholar Scite Semantic Scholar Scilit Crossref Connected Papers
License & Copyright
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish with this journal agree to the following terms:

1. Copyright Retention and Open Access License

Authors retain copyright of their work and grant the journal non-exclusive right of first publication under the Creative Commons Attribution 4.0 International License (CC BY 4.0).

This license allows unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

2. Rights Granted Under CC BY 4.0

Under this license, readers are free to:

  • Share — copy and redistribute the material in any medium or format
  • Adapt — remix, transform, and build upon the material for any purpose, including commercial use
  • No additional restrictions — the licensor cannot revoke these freedoms as long as license terms are followed

3. Attribution Requirements

All uses must include:

  • Proper citation of the original work
  • Link to the Creative Commons license
  • Indication if changes were made to the original work
  • No suggestion that the licensor endorses the user or their use

4. Additional Distribution Rights

Authors may:

  • Deposit the published version in institutional repositories
  • Share through academic social networks
  • Include in books, monographs, or other publications
  • Post on personal or institutional websites

Requirement: All additional distributions must maintain the CC BY 4.0 license and proper attribution.

5. Self-Archiving and Pre-Print Sharing

Authors are encouraged to:

  • Share pre-prints and post-prints online
  • Deposit in subject-specific repositories (e.g., arXiv, bioRxiv)
  • Engage in scholarly communication throughout the publication process

6. Open Access Commitment

This journal provides immediate open access to all content, supporting the global exchange of knowledge without financial, legal, or technical barriers.

Downloads