Skip to content
Research Article Open access CC BY 4.0

Analysis of Zmijewski Model's Accuracy in Predicting Potential Financial Distress for Indonesian Islamic Banking

Fitri Khoirotul Ummah, Esy Nur Aisyah

Asian Journal of Economics, Business and Accounting · pp. 34–40 · Published 12 Mar 2024

10.9734/ajeba/2024/v24i51290

Abstract

Every banking activity and product has risks. Risk is the result or consequence of an activity during the process or in future circumstances that can cause losses. Financial Distress can be characterized by a decrease in various financial ratios, a reduction in assets, a decline in sales, a decrease in profits and profitability levels, a reduction in working capital, and a continuous increase in debt. So, in this research, the author wanted to know the level of accuracy of the Altman z-score model in predicting potential financial Distress for Sharia Commercial Banks in Indonesia. The population used in this research was Sharia Commercial Banks registered with the Financial Services Authority. The sampling technique that the researchers used was purposive sampling, with a total sample of 12 Islamic commercial banks. The research results showed that only one bank experienced financial Distress, while 11 other banks experienced good economic conditions. The Zmijewski model is good because it has a high level of accuracy with a low error.

Financial distress Zmijewski model Sharia commercial banks credit risk Indonesia

References (13)

  1. 1 Risk management practices of conventional and Islamic banks in Bahrain [DOI]
  2. 2 Role of environmental, social, and governance rating data in predicting financial risk and risk management [DOI]
  3. 3 Impact of banking regulation on risk and efficiency in Islamic banking [DOI]
  4. 4 Analisis Financial Distress Menggunakan Metode Altman Z-Score, Springate, Zmijeski Dan Grover Pada Perusahaan Sektor Perkebunan yang Terdaftar di Bursa Efek Indonesia [DOI]
  5. 5 Managerial ownership and financial distress: evidence from the Chinese stock market [DOI]
  6. 6 MEMPREDIKSI FINANCIAL DISTRESS DENGAN MENGGUNAKAN MODEL ALTMAN SCORE, GROVER SCORE, ZMIJEWSKI SCORE (STUDI KASUS PADA PERUSAHAAN PERBANKAN) [DOI]
  7. 7 ANALISIS METODE ALTMAN Z-SCORE, SPRINGATE, DAN ZMIJEWSKI UNTUK MEMPREDIKSI FINANCIAL DISTRESS
  8. 8 Responses of financial stress and monetary policy to global warming: Evidence from China [DOI]
  9. 9 ANALISIS FINANCIAL DISTRESS DENGAN MENGGUNAKAN MODEL ALTMAN, SPRINGATE DAN ZMIJEWSKI PADA PERUSAHAAN RETAIL YANG TERDAFTAR DI BEI TAHUN 2013-2017
  10. 10 ANALISIS POTENSI FINANCIAL DISTRESS DENGAN METODE SPRINGATE PADA BANK UMUM SYARIAH DI INDONESIA [DOI]
  11. 11 Financial Distress and Financial Performance Analysis of Highway Companies Before and During the COVID-19 Pandemic: Evidence from Indonesia Stock Exchange [DOI]
  12. 12 ANALISIS AKURASI MODEL ALTMAN, GROVER, SPRINGATE, ZMIJEWSKI DALAM MEMPREDIKSI KONDISI FINANCIAL DISTRESS (STUDI EMPIRIS PADA PERUSAHAAN RITEL YANG TERDAFTAR DI BURSA EFEK INDONESIA [DOI]
  13. 13 ANALISIS TINGKAT KESEHATAN BANK UMUM SYARIAH DAN UNIT USAHA SYARIAH DENGAN METODE CAMELS DAN RGEC [DOI]

Cited by 2

Assessment of Financial Distress Risk of Logistics Companies in Malaysia Using the Zmijewski Model

Liew Kah Fai, Weng Siew Lam, Weng Siew Lam · 2026

Showing 1 of 2 known citations — external sources report more than can currently be individually listed.

Related research

Article metrics

Real usage data collected on this platform.

15

Page views

0

PDF downloads

1

Outbound clicks

2

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.