The analysis method of the impact of missing audit information on the securities investment decisions based on Logistic regression models

Abstract

To identify the influence of the lack of audit information on the decision-making of securities investment, a method to analyse the impact of missing audit information on the decision-making of securities investment based on two Logistic regression models was proposed in this paper. Assumptions about the impact of missing audit information on decision-making of investment were developed. Two Logistic regression models were established to analyse the impact by using Logistic regression functions. Variables in analysis models were designed to solve the Logistic regression models with an ADMM algorithm, so as to analyse the impact of missing audit information on the decision-making of securities investment. The analysis of the impact of missing audit information on the securities investment decisions based on two selected models yielded the following results: (1) The lack of audit information was positively correlated with other decisions except the standard effective securities investment decisions; (2) To improve the problem of audit information missing, as the time went on, there was a strong correlation between the lack of audit information and the effectiveness of securities investment decisions; and (3) The lack of audit information was negatively correlated with the effectiveness of securities investment decisions.