MANFAAT INFORMASI LABA DAN ARUS KAS UNTUK MEMPREDIKSI FINANCIAL DISTRESS PERUSAHAAN (Studi Empiris Pada Emiten Industri Barang Konsumsi di Bursa Efek Indonesia)

Abstract

Financial distress condition happens before bankcruptcy. This condition can be predicted using models that have developed by many researches. Most financial distress prediction models rely on financial data, which is easier to obtain, and focus on earnings. The purpose of this research is to examine whether cash flow or earnings that can better predict financial distress condition of a firm. The population of this study are the consume goods company listed in BEI (Bursa Efek Indonesia). This study use judgment sampling. The number of samples are 20 consume goods company for earnings model and 24 consume goods company for cash flow model listed in BEI, with period from 2003 until 2006. The statistic method used is discriminant analysis. The result of this study shows that cash flow can better predict financial distress condition. In other words, it is harder to predict financial distress condition defined in terms of earnings than in cash flow.