The literature of financial distress prediction is huge and broadly based in terms of publication outlets, e.g. banking, economics, finance, accounting, statistical, and lately, information systems journals. The review that follows is non-exhaustive, since excellent review literature already exists for the studies of the 1960s and the 1970s. I refer to the work of Scott (1981), Ball and Foster (1982), Altman (1983), Zavgren (1983) and Foster (1986). Also Taffler and Abassi (1984) offer an informative literature review in the related context of debt rescheduling among developing countries and Jones (1987) offers a comprehensive literature review of the 1980s publications.