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

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