Small businesses may be expected to be more likely to fail because they are more volatile, have less power in negotiations with financial and social partners, are more credit-rationed by credit managers, are less likely to benefit from their experience or 'learning effects', compared to large...

Recently, financial institutions have developed improved internal risk rating systems and emphasized the probability of default and loss given default. The default characteristics are studied for 756 loans from a French bank: CIC- Banque SNVB. A binomial logit regression is used to estimate...