The Hierarchy Level of Strategy: A Bankruptcy Prediction of the Company using the Altman Z-Score Method in the Coronavirus Disease Period (An Empirical Study on Manufacturing Companies of Various Industry Sub-Sectors Listed in Indonesia Stock Exchange in

Abstract

Coronavirus disease (COVID-19) weakens many business sectors, including the corporate sector.
This research uses quantitative method with explanation theory. Thus, researchers are interested in finding out
whether there are differences and influence of financial conditions in the 1st and 2nd Quarter of 2020 on
manufacturing companies of various industry sub-sectors listed in Indonesia Stock Exchange. This research
utilized the Altman Z-Score method. In addition, method of analysis used multicollinearity and binary logistic
regression, which data sources were from financial reports in the 1st quarter and the 2nd quarter of 2020 with a
sample of 36 x 2 = 72 observations; utilizing purposive sampling technique. The results showed that there was
no difference in financial conditions in the 1st quarter and the 2nd quarter. However, there was a significant
effect on the variables studied. Therefore, the Altman Z-Scores method is proven to be able to predict financial
bankruptcy of manufacturing companies of various industry sub-sectors. Additionally, this research provides a
contribution for companies carrying out hierarchical strategies to gain a competitive advantage.