The following is the result of a logistic regression analysis based on a sample of 113 acquired UK c
Question: The following is the result of a logistic regression analysis based on a sample of 113 acquired UK companies which are matched by size, industry, and year of accounts with 113 non-acquired companies. The dependent variable takes a value of 1 if the company was acquired and 0 if it was not acquired. The independent variables are sales growth (sg_1) in percent; the debt to equity ratio (de_1) in per cent; the after-tax profit margin (pm_1) in per cent and total assets divided by sales (tasls_1), all in the year prior to acquisition.
Logistic Regression
Case Processing Summary | |||
Unweighted Casesa | N | Percent | |
Selected Cases | Included in Analysis | 226 | 100.0 |
Missing Cases | 0 | .0 | |
Total | 226 | 100.0 | |
Unselected Cases | 0 | .0 | |
Total | 226 | 100.0 | |
a. If weight is in effect, see classification table for the total number of cases. |
Dependent Variable Encoding | |
Original Value | Internal Value |
non acquired | 0 |
Acquired | 1 |
Block 1: Method = Enter
Omnibus Tests of Model Coefficients | ||||
Chi-square | df | Sig. | ||
Step 1 | Step | 15.596 | 4 | .004 |
Block | 15.596 | 4 | .004 | |
Model | 15.596 | 4 | .004 |
Model Summary | |||
Step | -2 Log likelihood | Cox & Snell R Square | Nagelkerke R Square |
1 | 297.707a | .067 | .089 |
a. Estimation terminated at iteration number 6 because parameter estimates changed by less than .001. |
Classification Tablea | |||||
Observed | Predicted | ||||
status | Percentage Correct | ||||
non acquired | acquired | ||||
Step 1 | status | non acquired | 66 | 47 | 58.4 |
acquired | 41 | 72 | 63.7 | ||
Overall Percentage | 61.1 | ||||
a. The cut value is .500 |
Variables in the Equation | |||||||
B | S.E. | Wald | df | Sig. | Exp(B) | ||
Step 1a | sg_1 | -.009 | .005 | 3.345 | 1 | .067 | .991 |
de_1 | .002 | .001 | 4.600 | 1 | .032 | 1.002 | |
pm_1 | -.009 | .011 | .732 | 1 | .392 | .991 | |
tasls_1 | -.070 | .117 | .362 | 1 | .548 | .932 | |
Constant | -.083 | .260 | .101 | 1 | .751 | .921 | |
a. Variable(s) entered on step 1: sg_1, de_1, pm_1, tasls_1. |
You are required to write a report evaluating the performance of this model from both a financial and statistical perspective.
Price: $2.99
Answer: The solution consists of 3 pages
Deliverable: Word Document
Deliverable: Word Document