Faced with the question as to whether failure prediction models can easily be transferred and applied to a new data setting, this study examines the performance of seven models on a dataset of Belgian company failures after re-estimation of the coefficients. The validation results indicate that...

This paper gives an overview of the shortcomings of the most frequently used statistical techniques in failure prediction modeling. The statistical procedures that underpin the selection of variables and the determination of coefficients often lead to ‘overfitting'. It is also seen that the...