This paper focuses on one of the most determinant processes in business failure assessment: variable selection. We apply first-level variable selection based on previous literature on SMEs. Next, we perform a statistical variable selection on a sample of 3210 small firms using both mean and...

This paper focuses on one of the most determinant processes in business failure assessment: Variable selection. After a preselection of variables based on previous empirical literature, we perform a statistical variable selection on a sample of small firms using both mean and median differences....