arbiter
JournalsPricingAccount

The Effectiveness of The Bankruptcy Prediction Indicators Approach From the Johannesburg Stock Exchange Perspective

Ronel Juliana Cassim

The Indonesian Journal of Accounting Research2025https://doi.org/10.33312/ijar.748article
ABDC C
Weight
0.41

What the paper says

Bankruptcy has many fatalities and results in significant losses, so early detection of financial difficulties is essential. This study compares the bankruptcy prediction indicators approach (BPIA) with the emerging market score (EMS) as a benchmarking measure to evaluate BPIA's ability to predict bankruptcy. The study aims to determine whether the BPIA is a reliable predictor of company failure. A quantitative research approach was adopted, analyzing data from ten South African companies delisted from the Johannesburg Stock Exchange (JSE) across seven different sectors, obtained through purposive sampling and sourced from the Inet BFA McGregor database from 2017 to 2021. The empirical test results demonstrate that the BPIA is a reliable bankruptcy prediction tool, capable of detecting financial failure up to five years in advance. The results highlight the BPIA's 100% accuracy in predicting South African corporate bankruptcy, outperforming the EMS model. This study could help academics, financial professionals, government officials, managers, practitioners, shareholders, and other stakeholders. The recommendation of this study is to integrate the BPIA approach into companies' annual financial reporting.

2 citations

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.33312/ijar.748

Or copy a formatted citation

@article{ronel2025,
  title        = {{The Effectiveness of The Bankruptcy Prediction Indicators Approach From the Johannesburg Stock Exchange Perspective}},
  author       = {Ronel Juliana Cassim},
  journal      = {The Indonesian Journal of Accounting Research},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.33312/ijar.748},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The Effectiveness of The Bankruptcy Prediction Indicators Approach From the Johannesburg Stock Exchange Perspective

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.