Purpose of the Paper: To test whether the qualitative variables regarding the territory and/or the firm-territory relationship can improve the accuracy rates of small enterprise business failure prediction models.Methodology: We applied logistic regression to a sample of 736 Italian small...

From the 1960s onwards, a great number of studies focused on how to combine firm data with statistical classification models so as to predict business failure. This issue became more pressing in recent years after the Basel Capital Accords linked capital requirements to the banks' models for...

The results of our statistical analyses, conducted on a sample of small manufacturing firms in Northern and Central Italy, show that both discriminant analysis and logistic regression are effective tools for designing SEs default prediction models based on economic-financial ratios