Comparison of Logistic Regression and Linear Discriminant Analyses of the Determinants of Financial Sustainability of Rural Banks in Ghana

Godfred Kwame Abledu; Akuffo Buckman; Thomas Adade; Samuel Kwofie

doi:doi:10.11648/j.ajtas.20160502.12

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Comparison of Logistic Regression and Linear Discriminant Analyses of the Determinants of Financial Sustainability of Rural Banks in Ghana

Godfred Kwame Abledu, Akuffo Buckman, Thomas Adade, Samuel Kwofie

Received: 8 February 2016 Accepted: 18 February 2016 Published: 4 March 2016

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Abstract

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.

DOI	10.11648/j.ajtas.20160502.12
Published in	American Journal of Theoretical and Applied Statistics (Volume 5, Issue 2, March 2016)
Page(s)	49-57
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Rural and Community Banks, Linear Discriminant Analysis, Logistic Regression, Financial Sustainability

References

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APA Style

Godfred Kwame Abledu, Akuffo Buckman, Thomas Adade, Samuel Kwofie. (2016). 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, 5(2), 49-57. https://doi.org/10.11648/j.ajtas.20160502.12

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ACS Style

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. Am. J. Theor. Appl. Stat. 2016, 5(2), 49-57. doi: 10.11648/j.ajtas.20160502.12

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AMA Style

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. Am J Theor Appl Stat. 2016;5(2):49-57. doi: 10.11648/j.ajtas.20160502.12

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@article{10.11648/j.ajtas.20160502.12,
  author = {Godfred Kwame Abledu and Akuffo Buckman and Thomas Adade and Samuel Kwofie},
  title = {Comparison of Logistic Regression and Linear Discriminant Analyses of the Determinants of Financial Sustainability of Rural Banks in Ghana},
  journal = {American Journal of Theoretical and Applied Statistics},
  volume = {5},
  number = {2},
  pages = {49-57},
  doi = {10.11648/j.ajtas.20160502.12},
  url = {https://doi.org/10.11648/j.ajtas.20160502.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20160502.12},
  abstract = {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.},
 year = {2016}
}

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TY  - JOUR
T1  - Comparison of Logistic Regression and Linear Discriminant Analyses of the Determinants of Financial Sustainability of Rural Banks in Ghana
AU  - Godfred Kwame Abledu
AU  - Akuffo Buckman
AU  - Thomas Adade
AU  - Samuel Kwofie
Y1  - 2016/03/04
PY  - 2016
N1  - https://doi.org/10.11648/j.ajtas.20160502.12
DO  - 10.11648/j.ajtas.20160502.12
T2  - American Journal of Theoretical and Applied Statistics
JF  - American Journal of Theoretical and Applied Statistics
JO  - American Journal of Theoretical and Applied Statistics
SP  - 49
EP  - 57
PB  - Science Publishing Group
SN  - 2326-9006
UR  - https://doi.org/10.11648/j.ajtas.20160502.12
AB  - 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.
VL  - 5
IS  - 2
ER  -

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Author Information

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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APA Style

Godfred Kwame Abledu, Akuffo Buckman, Thomas Adade, Samuel Kwofie. (2016). 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, 5(2), 49-57. https://doi.org/10.11648/j.ajtas.20160502.12

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ACS Style

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. Am. J. Theor. Appl. Stat. 2016, 5(2), 49-57. doi: 10.11648/j.ajtas.20160502.12

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AMA Style

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. Am J Theor Appl Stat. 2016;5(2):49-57. doi: 10.11648/j.ajtas.20160502.12

Copy | Download

@article{10.11648/j.ajtas.20160502.12,
  author = {Godfred Kwame Abledu and Akuffo Buckman and Thomas Adade and Samuel Kwofie},
  title = {Comparison of Logistic Regression and Linear Discriminant Analyses of the Determinants of Financial Sustainability of Rural Banks in Ghana},
  journal = {American Journal of Theoretical and Applied Statistics},
  volume = {5},
  number = {2},
  pages = {49-57},
  doi = {10.11648/j.ajtas.20160502.12},
  url = {https://doi.org/10.11648/j.ajtas.20160502.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20160502.12},
  abstract = {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.},
 year = {2016}
}

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TY  - JOUR
T1  - Comparison of Logistic Regression and Linear Discriminant Analyses of the Determinants of Financial Sustainability of Rural Banks in Ghana
AU  - Godfred Kwame Abledu
AU  - Akuffo Buckman
AU  - Thomas Adade
AU  - Samuel Kwofie
Y1  - 2016/03/04
PY  - 2016
N1  - https://doi.org/10.11648/j.ajtas.20160502.12
DO  - 10.11648/j.ajtas.20160502.12
T2  - American Journal of Theoretical and Applied Statistics
JF  - American Journal of Theoretical and Applied Statistics
JO  - American Journal of Theoretical and Applied Statistics
SP  - 49
EP  - 57
PB  - Science Publishing Group
SN  - 2326-9006
UR  - https://doi.org/10.11648/j.ajtas.20160502.12
AB  - 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.
VL  - 5
IS  - 2
ER  -

Copy | Download