Comparison of Logistic Regression and Linear Discriminant Analyses of the Determinants of Financial Sustainability of Rural Banks in Ghana
American Journal of Theoretical and Applied Statistics
Volume 5, Issue 2, March 2016, Pages: 49-57
Received: Feb. 8, 2016; Accepted: Feb. 18, 2016; Published: Mar. 4, 2016
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Godfred Kwame Abledu, Department of Applied Mathematics, Faculty of Applied Sciences and Technology, Koforidua Polytechnic, Koforidua, Ghana
Akuffo Buckman, Department of Applied Mathematics, Faculty of Applied Sciences and Technology, Koforidua Polytechnic, Koforidua, Ghana
Thomas Adade, Department of Accountancy, Faculty of Business and Management Studies, Ho Polytechnic, Ho, Ghana
Samuel Kwofie, Department of Applied Mathematics, Faculty of Applied Sciences and Technology, Koforidua Polytechnic, Koforidua, Ghana
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Financial Sustainability is a primary issue for successful rural and community banks’ services. Establishing a system of sustained provision of modern financial services has, however, been challenging and most controversial. Several studies have been conducted on the determinants of sustainability of institutions in various countries. However, the levels of significance of the factors that influence financial sustainability of banks vary with studies. In addition, the results are mixed and empirical evidence regarding the determinants of rural and community banks’ sustainability is also missing. The objective of this study therefore was to develop a model which could be used to identify likely future rural and community banks that are non-sustainable. This study examined the determinants of financial sustainability of Rural and community banks using discriminant analysis (LDA) and logistic regression (LR) models.
Rural and Community Banks, Linear Discriminant Analysis, Logistic Regression, Financial Sustainability
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Godfred Kwame Abledu, Akuffo Buckman, Thomas Adade, Samuel Kwofie, Comparison of Logistic Regression and Linear Discriminant Analyses of the Determinants of Financial Sustainability of Rural Banks in Ghana, American Journal of Theoretical and Applied Statistics. Vol. 5, No. 2, 2016, pp. 49-57. doi: 10.11648/j.ajtas.20160502.12
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