Threshold Moving Approach with Logit Models for Bankruptcy Prediction

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F23%3A43921248" target="_blank" >RIV/62156489:43110/23:43921248 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1007/s10614-022-10244-8" target="_blank" >https://doi.org/10.1007/s10614-022-10244-8</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/s10614-022-10244-8" target="_blank" >10.1007/s10614-022-10244-8</a>

Result language
angličtina
Original language name
Threshold Moving Approach with Logit Models for Bankruptcy Prediction
Original language description
This article focuses on the issue of the classification capability of logistic regression models in the area of bankruptcy prediction within two manufacturing sectors. Most authors undervalue the setting of a threshold for classification and use a standard dividing point. However, the results of this article show that for data that truly reflect the market situation, this standard threshold is inappropriate, as it leads to a high classification error for bankrupt companies, which are less represented in the dataset than active (healthy) companies. In order to find a suitable threshold, two criteria derived from empirically estimated ROC curves were used in this article, which made it possible to balance the error rate within the group of active and bankrupt companies.
Czech name
—
Czech description
—

Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
10103 - Statistics and probability

Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Similar results(10)