Logit Analysis for Profit Maximizing Loan Classification

David L. Watt, Timothy L. Mortensen and F. Leistritz

No 197448, Staff Papers from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: Lending criteria and loan classification methods are developed. Rating system breaking points are analyzed to present a method to maximize loan revenues. Financial characteristics of farmers are used as determinants of delinquency in a multivariate logistic model. Results indicate that debt-to-asset and operating ration are most indicative of default.

Keywords: Farm Management; Financial Economics (search for similar items in EconPapers)
Pages: 13
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https://ageconsearch.umn.edu/record/197448/files/AAE%20No.88009.pdf (application/pdf)

Related works:
Working Paper: Logit Analysis for Profit Maximizing Loan Classification (1988)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddsps:197448

DOI: 10.22004/ag.econ.197448

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