This paper applies mainstream statistical techniques (linear discriminant analysis and logistic regression) to a sample of over 6,000 Italian firms in the attempt to develop two distress prediction models, specifically constructed for SEs and taking into account diversity of size, geographical...

From as early as the 1960s, there have been a large number of studies aimed at assessing the application of statistical models to corporation data with a view to predicting business failure. This issue has become increasingly important in recent years, as the New Basel Capital Accord (Basel II)...