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
