Access the full text.
Sign up today, get DeepDyve free for 14 days.
E. Kuh, J. Meyer (1955)
Correlation and Regression Estimates when the Data are RatiosEconometrica, 23
E. Amir, T. Harris, E. Venuti (1993)
A Comparison Of The Value-Relevance Of United-States Versus Non-United-States Gaap Accounting Measures Using Form-20-F ReconciliationsJournal of Accounting Research, 31
Mary Barth (1994)
FAIR VALUE ACCOUNTING: EVIDENCE FROM INVESTMENT SECURITIES AND THE MARKET VALUATION OF BANKS, 69
S. Kothari, J. Zimmerman (1995)
Price and return modelsJournal of Accounting and Economics, 20
Merton Miller, F. Modigliani (1966)
SOME ESTIMATES OF THE COST OF CAPITAL TO THE ELECTRIC UTILITY INDUSTRY, 1954-57, 56
B. Lev, S. Sunder (1979)
Methodological issues in the use of financial ratiosJournal of Accounting and Economics, 1
C. Olsen (1985)
Valuation Implications of SFAS No. 33 Data for Electric Utility InvestorsJournal of Accounting Research, 23
Mary Barth, W. Beaver, W. Landsman (1998)
Value-Relevance of Banks' Fair Value Disclosures Under SFAS No. 107
W. Landsman (1986)
AN EMPIRICAL INVESTIGATION OF PENSION FUND PROPERTY RIGHTS, 61
Andrew Christie (1987)
On cross-sectional analysis in accounting researchJournal of Accounting and Economics, 9
Z. Griliches, J. Hausman (1984)
Errors in Variables in Panel DataEconometrics: Econometric & Statistical Methods - Special Topics eJournal
S. Goldfeld, R. Quandt (1965)
Some Tests for HomoscedasticityJournal of the American Statistical Association, 60
Mary Barth, M. McNichols (1994)
Estimation And Market Valuation Of Environmental Liabilities Relating To Superfund SitesJournal of Accounting Research, 32
W. Beaver, C. Eger, Stephen Ryan, Mark Wolfson (1989)
Financial-Reporting, Supplemental Disclosures, And Bank Share PricesJournal of Accounting Research, 27
H. White (1980)
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for HeteroskedasticityEconometrica, 48
A. Chesher, I. Jewitt (1987)
The Bias of a Heteroskedasticity Consistent Covariance Matrix EstimatorEconometrica, 55
Joseph Magliolo (1986)
Capital-Market Analysis Of Reserve Recognition AccountingJournal of Accounting Research, 24
L. Daley (1982)
The valuation of reported pension measures for firms sponsoring defined benefit plans
R. Park (1966)
Estimation with Heteroscedastic Error TermsEconometrica, 34
V. Bernard (1987)
CROSS-SECTIONAL DEPENDENCE AND PROBLEMS IN INFERENCE IN MARKET-BASED ACCOUNTING RESEARCHJournal of Accounting Research, 25
Roger Kormendi, R. Lipe (1987)
Earnings Innovations, Earnings Persistence, and Stock ReturnsThe Journal of Business, 60
David Guenther, Mark Trombley (1994)
The “LIFO Reserve” and the Value of the Firm: Theory and Empirical EvidenceContemporary Accounting Research, 10
Mary Barth, W. Beaver, W. Landsman (1992)
The market valuation implications of net periodic pension cost componentsJournal of Accounting and Economics, 15
Steven Lustgarten (1982)
The impact of replacement cost disclosure on security prices: New EvidenceJournal of Accounting and Economics, 4
Abstract. This study investigates coefficient bias and heteroscedasticity resulting from scale differences in accounting levels‐based research designs analytically and using simulations based on accounting data. Findings indicate that including a scale proxy as an independent variable is more effective than deflation at mitigating coefficient bias, even if the proxy is 95 percent correlated with the true scale factor. In fact, deflation can worsen coefficient bias. Also, deflation often does not noticeably reduce heteroscedasticity and can decrease estimation efficiency. White (1980) standard errors are close to the true ones in regressions using undeflated variables. Replications of specifications in three recent accounting studies confirm the simulation findings. The findings suggest that when scale differences are of concern, accounting researchers should include a scale proxy as an independent variable and report inferences based on White standard errors. Résumé. Les auteurs examinent, tant sur le plan analytique qu'au moyen de simulations basées sur les données comptables, la distorsion des coefficients et l'hétéroscédasticité résultant des différences d'échelle dans les plans de recherche comptable basés sur les niveaux. Leurs constatations révèlent que l'inclusion d'un substitut d'échelle à titre de variable indépendante est plus efficace que la déflation pour atténuer la distorsion relative au coefficient, même si le substitut présente une corrélation de 95 pour cent avec le véritable facteur d'échelle. En fait, la déflation peut accentuer la distorsion relative au coefficient. Aussi, il arrive souvent que la déflation, sans réduire de façon appréciable l'hétéroscédasticité, puisse diminuer l'efficience de l'estimation. Les erreurs‐types de White (1980) se rapprochent des erreurs véritables dans les régressions faisant appel à des variables non déflatées. La répétition des mêmes caractéristiques dans trois études comptables récentes confirme les résultats de la simulation. Les conclusions de l'étude donnent à penser que lorsque les différences d'échelle sont sujet de préoccupation, les chercheurs en comptabilité devraient faire intervenir un substitut d'échelle à titre de variable indépendante et formuler les inférences à partir des erreurs‐types de White.
Contemporary Accounting Research – Wiley
Published: Sep 1, 1996
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.