Table 10 Logit re-estimated models’...

Table 10

Logit re-estimated models’ accuracy in the European sample

Model	Altman		Ohlson		Zmijewski
Company	Non-B.	Bankrupt	Non-B.	Bankrupt	Non-B.	Bankrupt
Sample	190	38	190	38	190	38
Predicted	138	24	136	28	136	25
Cut-off	≤0.5	>0.5	≤0.5	>0.5	≤0.5	>0.5
False	52	14	54	10	54	13
Type I error		36.84%		26.32%		34.21%
Type II error	27.37%		28.42%		28.42%
Accuracy	71.05%		71.93%		70.61%
AUC-ROC	0.69		0.74		0.72

Model	Altman		Ohlson		Zmijewski
Company	Non-B.	Bankrupt	Non-B.	Bankrupt	Non-B.	Bankrupt
Sample	190	38	190	38	190	38
Predicted	138	24	136	28	136	25
Cut-off	≤0.5	>0.5	≤0.5	>0.5	≤0.5	>0.5
False	52	14	54	10	54	13
Type I error		36.84%		26.32%		34.21%
Type II error	27.37%		28.42%		28.42%
Accuracy	71.05%		71.93%		70.61%
AUC-ROC	0.69		0.74		0.72

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

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