Are Indonesian construction companies financially distressed? A prediction using artificial neural networks

نویسندگان

چکیده

Construction companies are very dependent on the projects carried out by a company. Therefore, measuring whether company is distressed or non-distressed can be done looking at ratios derived from components of financial statements both balance sheet and company’s profit loss. This study offers new method for distress in with Artificial Neural Networks (ANN). The model provided comes several 17 construction listed Indonesia Stock Exchange. expected to produce best showing lowest prediction error rate. results showed that ANN has 25 inputs, 20 hidden layer neurons, 1 output. obtained will tested directly sample used; 6 have 11 non-distress problems. result proves predict level small rate identified as financially distressed. warning increase revenue adding get status. Traditional models such Altman, Zmijewski, Springate, Fulmer, which become researchers’ guidelines distress, added 25-20-1 comparison strengthen research results.

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ژورنال

عنوان ژورنال: Investment management & financial innovations

سال: 2023

ISSN: ['1810-4967', '1812-9358', '1813-4998']

DOI: https://doi.org/10.21511/imfi.20(2).2023.04