This paper proposes an innovative methodology based on the use of differences between percentiles to compute the scores and distances to failure of a specific firm or group of firms. This approach is based on significant differences between the group of failed firms and the population to which...

This study contributes to identifying common distress patterns in financial indicators by sector and country in Finland, France, Germany, Italy, Portugal, and Spain as well as ex-post signals of reorganization success. We use PDFR that provides a distance-to-failure measure and allows us to...

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....