4.3. Factors that influence the fir

4.3. Factors that influence the firm-specific default prediction accuracy
The accuracy ratio, which we considered in our first set of analyses,
is an aggregate measure of default prediction accuracy. It is
not possible to calculate this measure for individual firms, which
means that an analysis based on firm-year observations cannot
be conducted. Therefore, we define a second measure which indicates
improvements in default accuracy predictions at the individual
firm level, using the probit models outlined in the previous
section. Eq. (3) provides the definition of this measure: