Using Altman's EM-Score Model to Analyze Bankruptcy: A Case Study of Agribusiness Sector in The Stock Exchange of Thailand

The objectives of this research were 1) to analyze the level of risk (financial distress) in Companies of Agribusiness Sector in The Stock Exchange of Thailand and 2) to study the relationship between financial ratios and the systematic risk () of these firms. The populations were 11 companies of Agribusiness Sector in The Stock Exchange of Thailand. The research presented Altman's EM -Score Model as the research instrument and analyzed the relationship between financial ratios and the systematic risk () by Pearson's correlation coefficient. The research found that 1) the level of risk in these companies were very low to bankruptcy chance and 2) The relationship between financial ratios and the systematic risk () was at the medium level. The firm's working capital divided by its total assets, the firm's retained earnings divided by its total assets and the firm's operating income divided by its total assets related to systematic risk () on the opposite site while the book value of equity divided by its total liabilities related to systematic risk () on the same way.