I have a dataset that looks at the default and non-default of companies. Thus it contains one variable 'company default' that is 1 or 0 and some extra descriptive variables. However my dataset is highly unbalanced. 97 percent of the samples are non-default, i.e. 'company default' equal to 0. Only 3 percent of my dataset has 'company default' equal to 1. Now I am not intereset in a predictive study, but I am interested in finding which variables have what impact on my independent variable default. I will perform a logistic regression on the dataset and use the coefficients of the variables that are produced to perform my expanatory analysis.
I know that if I would do a predictive analysis I should make sure my dataset is balanced by, for example oversampling my minority class or undersampling my majority class. However I cannot find any literature online that says how to adress this when I am only interested in expalantory analysis. Can I just use my unbalanced dataset to perform logistic regression on the data and interpret the coefficients that result from the model for the expanatory analysis?
Anyone more familiar in this area or with econometrics to approach this?