Comparative analysis using multinomial logistic regression

Abstract

Financial sustainability can be ensured through adopting financial control measures. Therefore it is necessary to examine whether an ULB has exercised financial controls during a particular year. In our paper we have examined whether an ULB has been able to exercise our designed financial controls. We have categorised the ULBs in “Financial Control and Sustainability Group” on the basis of exercising two financial controls and finally a model has been developed using multinomial logistic regression. Results show that the model is good and well explained. The model equation has predicted 76.80% as correctly classified and we can say that our model can be used for prediction with much higher accuracy. Our study is completely based on financial parameters and therefore it is a unique one. We suggest that the allocation of performance grant should also consider the fact of exercising financial control and appropriate authority can consider our approach for allocation and release of grant based on the financial result of ULBs.