RELEVANSI INFORMASI PELAPORAN BERBASIS SEDIAAN DAN ARUS KAS DALAM MEMPREDIKSI KEMAMPUAN PERUSAHAAN BANGKIT DARI KESULITAN KEUANGAN

Abstract

Accounting information is known to be useful in predicting financial distress and corporate failure. But, whether accounting information can also predict the emergence of troubled companies from financial distress is still an empirical question. Furthermore, reporting information can be characterized based on the strategies in mitigating financial distress, such as stock andflowbased This study aims to examine the relevance of stock and cash flow-based reporting information in predicting the ability offinancial distressed company to emerge from the state offinancial distress. Stock-based information consists of normal earning, abandonment value, working capital, and leverage. Cash flowbased information consists of operating income and operating accruals. This study use manufacturing companies from 2004-2006 experiencing financial distress as the sample and logistic regression as statistical technique. The result shows that there is no difference of financial reporting information between emerger group andnon emerger group. Operating income is the only independent variable that significantly influence the probability of company to emerge from financial distress condition. The rest independent variables (normal earnings, abandonment value, working capital, leverage, and operating accruals) have no significant influence to the probability ofemergence. Keywords : financial distress, normal earnings, abandonment value, workingcapital, leverage, operating income, operating accruals