Financial Innovation

Table 12 Comparison of Predictive Accuracy of the Models

From: Re-estimation and comparisons of alternative accounting based bankruptcy prediction models for Indian companies

	Panel-A (Estimation Sample)
	Original model Accuracy			Re-estimated model Accuracy
Model	Overall	Distressed	Non-Distressed	Overall	Distressed	Non-Distressed
Altman	67.692	92.308	43.077	96.923	98.462	95.385
Ohlson	48.462	95.385	1.538	95.385	96.923	93.846
Zmijewski	71.538	98.462	44.615	89.231	87.692	90.769
New Model	98.460	98.460	98.460	NA	NA	NA
	Panel-B (Holdout Sample)
	Original model Accuracy			Re-estimated model Accuracy
	Overall	Distressed	Non-Distressed	Overall	Distressed	Non-Distressed
Altman	61.538	25.641	97.436	88.462	87.179	89.744
Ohlson	64.103	97.436	30.769	89.744	87.179	92.308
Zmijewski	79.487	97.436	61.538	76.923	61.538	92.308
New Model	87.179	82.051	92.308	NA	NA	NA

Source: Author’s estimation

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