Application of the logistic regression model to assess the likelihood of making tangible investments by agricultural enterprises

Abstract

This paper presents the methodological assumptions of a logistic regression model and presents an example of the use of this type of models to assess the factors determining investment decisions of agricultural enterprises. The aim of the study was to identify and evaluate the factors influencing the decisions of agricultural enterprises in Central Pomerania with respect to tangible investments using the logistic regression model. The results of the research proved that the probability of making tangible investments by agricultural enterprises in Central Pomerania is influenced by financial factors: the structure of the use of capital expenditure (x1, x4); use of traditional sources of financing (x5, x6, x8); use of alternative sources of financing (x13); variable combining the use of traditional and alternative sources of financing (x14), as well as non-financial factors: characteristics of the enterprise (x17) and behavioral aspects (x18). It was also established that financial factors have a greater impact on the development of tangible investments in agricultural enterprises in Central Pomerania than non-financial factors.