previous studies only employ the binary approach in their forecast, this work compares both the binary logit model and the … classifying financially-failed firms. The binary logit model recognizes slightly-distressed events and bankruptcy … misclassification errors and error costs of the binary logit model are smaller than those of the multinomial logit model, suggesting …

-linear regression models such as the binary logit model because, unlike in linear regression models, estimates of the effects of … independent variables. We propose an extension of the binary logit model based on a finite mixture approach in which we …This paper proposes a new approach to dealing with unobserved heterogeneity in applied research using the binary logit …