Financial Distress in the Tourism and Leisure Industry: The Accuracy of Altman, Springate, Zmijewski, and Grover Models

Authors : Khairunnisa Syifa Fadhila Fauzi; Isnawati Isnawati
article cite 0 Year 2025
source: International Journal of Business and Applied Economics
Abstract

This study aims to determine the difference in results and accuracy of Altman, Springate, Zmijewski, and Grover's models in predicting Financial Distress. A quantitative model was applied to this study using a purposive sampling technique with a sample of 35 companies. The object of the research is tourism and leisure industry companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2022 period. The results showed that Grover was the model with the highest accuracy rate of 89%, type error of 11%. Then followed by Altman with an accuracy rate of 80%, type error of 9%, Zmijewski with an accuracy rate of 74%, type error of 26%, and Springate with the lowest accuracy rate of 63% and type error of 37%. So that grover is the most accurate prediction model to predict financial distress in tourism and leisure industry companies listed on the Indonesia Stock Exchange (IDX).


Concepts :
Housing Market and Economics
Insurance and Financial Risk Management
article cite 0 Year 2025 source International Journal of Business and Applied Economics
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