Business Failure Research: Some Statistics, Methods, Models and Variables

Abstract

Corporate distress and relative predictions have been a major theme for numerous researchers and practitioners in the last decades. The relevant literature adopts a variety of terms to describe corporate distress. The most commonly used terms are “failure”, “insolvency”, “default” and “bankruptcy”. All of them assign economic and financial problems and although they are used somehow optionally, these terms provide a slightly different definition connected with the specific interest or condition of the firms under examination.