Comparative Analysis of the Taffler and Grover Models in Predicting Financial Distress in Local Cosmetic Companies Listed on the Indonesia Stock Exchange for the 2019-2023 Period

Abstract

This research aims to analyze whether there is a significant difference between the Taffler Model and the Grover Model in predicting financial distress conditions in local cosmetic companies listed on the IDX for the period 2019–2023. The sampling technique used is purposive sampling. This study uses secondary data sourced from the financial reports of local cosmetic companies during 2019–2023. Hypothesis testing in this research uses the Mann–Whitney test. The results show that there is a significant difference between the Taffler Model and the Grover Model in predicting financial distress conditions in local cosmetic companies listed on the IDX for the period 2019–2023. This is due to variations in the financial ratios used and differences in bankruptcy value criteria in each financial distress prediction model. The Taffler Model is the most accurate financial distress prediction model for local cosmetic companies with an accuracy rate of 80%, while the Grover Model achieves an accuracy rate of 64%.