ABSTRACT
This chapter identifies and explains the sources, terms, definitions, time periods, and magnitudes of the internal variables used in subsequent models, as well as the firms that comprise the database with their industry classifications and any other relevant data issues. A preliminary failure model of the form given in Chapter 3, equations (3.3) and (3.4), is presented with only the internal financial variables as predictors which takes no account of the dependencies that exist between firm-years.
