74 Book Reviews that size is positively related to performance. Does encourage “dipping into” the text, as so much is it make a difference if a quadratic (or even cubic) assumed, in terms of technical background knowl- size variable is used? One feels a slight uneasiness edge of the venture capital industry and its data in reaching so rapidly the conclusion expressed. sources. How was heteroskedasticity dealt with (indeed, The above example is descriptive. A more was it considered), for example? Was an attempt analytical one is “A one-standard deviation reduc- made to explore interactions between the inde- tion in the Carter-Manaster ranking of the book pendent variables? Were tests of robustness under-writer (i.e. by 1.1 rank) led to a predicted employed? It may well be that all this was con- event window return of –2.8 percent”. If you read sidered, but it is not mentioned, though the use of each of the above examples carefully, and in its other variables is alluded to. Because of this lack context, the reasoning is indeed correct, but there of richness in the discussion, here and elsewhere, is still a communication failure along the line. A of the applied econometrics, one feels
Small Business Economics – Springer Journals
Published: Oct 8, 2004
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