BUKU ABSTRAK - Universiti Putra Malaysia

Adequacy of Summary Measures of Fit in Binary Response Model
Assoc. Prof. Dr. Habshah Midi
S. K. Sarkar
Institute of Mathematical Research, University Putra Malaysia,
43400 UPM Serdang, Selangor, Malaysia.
+603-8946 6876; habshahmidi@gmail.com
Keywords: Binary response variable, covariate pattern, sensitivity, specificity, ROC curve
Segmental Reporting by Malaysian Companies: IAS 14 versus MASB 22
Assoc. Prof. Dr. Hashanah Ismail
Nurul Adillah Yusof
Faculty of Economics and Management, University Putra Malaysia,
43400 UPM Serdang, Selangor, Malaysia.
+603-8946 7739; hashanah@econ.upm.edu.my
Keywords: Segmental reporting, geographical segments, line of business segments
107
Social Sciences
Logistic regression model is used in a wide range of applications leading to binary dependent data analysis.
Though the vast majority of the works related to the logistic regression appears in epidemiological research, it is
evident that the technique is frequently used in observational social science studies. The goal of logistic regression
is to correctly predict the outcome for individual case using the most parsimonious model. To accomplish this
goal, a model is created including all predictors that are useful in predicting the response variable. In spite of
such increase, there has been no commensurate increase in the use of commonly available methods for assessing
the model adequacy. Failure to address model adequacy may lead to incorrect inferences. The goal of this paper
is to present an overview of few easily employed methods for assessing the fit of binary response model. The
summary measures of goodness-of-fit as Likelihood Ratio test, Hosmer-Lemeshow test, Osius-Rojek large
sample approximation test, Stukel test, and area under Receiver Operating Characteristic curve indicate that
the binary response model fits the data quite well. However, recommendations are made for the use of methods
for assessing the model adequacy in different aspects before proceed to present the results from a fitted logistic
regression model.
The paper reports on the effects of a local standard MASB 22 on disclosure practices among Malaysian
companies and whether the introduction of MASB 22 has resulted in a greater level of disclosures with respect to
segmental reporting under IAS 14 previously. The study finds that MASB 22 has improved segmental reporting
with greater number of line of business and geographical segments being reported by sample companies.