Table 11 Original models’ accuracy in...

Table 11

Original 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	142	20	148	27	132	25
Cut-off	≥4.03	<4.03	≤0.5	>0.5	≤0.5	>0.5
False	48	18	42	11	58	13
Type I error		47.37%		28.95%		34.21%
Type II error	25.26%		22.11%		30.53
Accuracy	71.05%		76.75%		68.86%
AUC-ROC	n.a		0.76		0.72

Model	Altman		Ohlson		Zmijewski
Company	Non-B.	Bankrupt	Non-B.	Bankrupt	Non-B.	Bankrupt
Sample	190	38	190	38	190	38
Predicted	142	20	148	27	132	25
Cut-off	≥4.03	<4.03	≤0.5	>0.5	≤0.5	>0.5
False	48	18	42	11	58	13
Type I error		47.37%		28.95%		34.21%
Type II error	25.26%		22.11%		30.53
Accuracy	71.05%		76.75%		68.86%
AUC-ROC	n.a		0.76		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

[ViewLarge]

Sharing Unavailable