Benish M Score Ratio and Altman Z Score Ratio Models Against Bankruptcy Detection
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Abstract
Earning management is a sort of fraud since it gives management the chance to manipulate the options accessible to them in order to maximize performance and the projected amount of profit by interfering with financial reporting. The financial and banking industry is the one that has been most negatively impacted by this fraud, which is one of the top three reasons why a company organization files for bankruptcy. This study aims to identify fraud at the Indonesian Economic Bank a financial organization that will be liquidated between 2020 and 2023, as early as feasible. This study is a form of quantitative research that combines the Benis M Score Ratio and Altman Z Score Ratio bankruptcy detection models. The study's findings suggest that the Altman Z Score has a liquidity and solvency ratio that has no bearing on firm bankruptcy, whereas the Benish M Score Ratio model, which includes the Depreciation Index, does not.
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