Table 8 Logit re-estimated models’...

Table 8

Logit re-estimated models’ accuracy in-sample

Model	Altman		Ohlson		Zmijewski
Company	Non-B.	Bankrupt	Non-B.	Bankrupt	Non-B.	Bankrupt
Sample	9,001	370	9,001	370	9,001	370
Predicted	7,294	321	7,592	312	7,463	302
Cut-off	≤0.5	>0.5	≤0.5	>0.5	≤0.5	>0.5
False	1,707	49	1,409	58	1,538	68
Type I error		13.24%		15.68%		18.38%
Type II error	18.96%		15.65%		17.09%
Accuracy	81.26%		84,35%		82.86%
AUC-ROC	0.91		0.92		0.91

Model	Altman		Ohlson		Zmijewski
Company	Non-B.	Bankrupt	Non-B.	Bankrupt	Non-B.	Bankrupt
Sample	9,001	370	9,001	370	9,001	370
Predicted	7,294	321	7,592	312	7,463	302
Cut-off	≤0.5	>0.5	≤0.5	>0.5	≤0.5	>0.5
False	1,707	49	1,409	58	1,538	68
Type I error		13.24%		15.68%		18.38%
Type II error	18.96%		15.65%		17.09%
Accuracy	81.26%		84,35%		82.86%
AUC-ROC	0.91		0.92		0.91

Note(s): AUC-ROC means the Area Under the ROC Curve. Non-B. is the number of non-bankrupt companies. Bankrupt is the number of bankrupt companies. Type I error is the percentage of bankrupt companies classified by the model as non-bankrupt, and Type II error is the percentage of non-bankrupt companies classified as bankrupt. Accuracy is the percentage of correctly predicted types in the total sample

Source(s): Authors’ own elaboration

[ViewLarge]

Sharing Unavailable