Good Practices in Empirical Corporate Finance and Accounting Research

• Authors: Marek Gruszczyński

Abstracts

EN

This paper presents the risks of quantitative research pertaining to corporate finance and accounting. These is followed by a survey-like catalogue of good practices in modelling. All considerations are rooted in financial microeconometrics, the field for examining both practical and theoretical questions of applying econometric techniques in corporate finance and accounting research based on the use of microdata (Gruszczyński 2018a). Two major parts of the paper include: (1) discussion of the typical drawbacks in applying regression-type models, like causality vs. correlation, selection of explanatory variables and endogeneity, and (2) list of good practices in microeconometric applications to corporate finance and accounting research, based on Faff (2017), Kennedy (2002), Adams (2017), Hyndman (robjhyndman.com/) and author’s own experience. Catalogue of good practices in microeconometric applications to corporate finance and accounting may serve as the checklist for students and researchers.

Keywords

EN

financial microeconometrics; empirical corporate finance; applied accounting; good practices in research

• Publisher: Uniwersytet Warszawski. Wydział Nauk Ekonomicznych
• Journal: Journal of Banking and Financial Economics
• Year: 2018
• Issue: 2(10)
• Pages: 45-51

Dates

published

2018

Contributors

author

Marek Gruszczyński

• SGH Warsaw School of Economics, Poland

References

• Atanasov V., Black B. (2016). Shock-Based Causal Inference in Corporate Finance and Accounting Research. Critical Finance Review. 2016, 5: 207–304.
• Adams R.B. (2017). The ABCs of empirical corporate (governance) research, Corporate Governance International Review. 2017; 25: 461–464.
• Angrist J.D., Pischke J.-S. (2017). Undergraduate Econometrics Instruction: Through Our Classes, Darkly. Journal of Economic Perspectives. 31 (2): 125–144.
• Coles J.L., Lemmon M.L., Meschke J.F. (2012). Structural models and endogeneity in corporate finance: The link between managerial ownership and corporate performance. Journal of Financial Economics. 103 (2012); 149–168.
• Faff R., (2017). Pitching Research®. Version 15 (or next). Available in SSRN: http://ssrn.com/abstract=2462059.
• Faff R. et al. (2017). Increasing the Discoverability of Non-English Language Research Papers: A Reverse- Engineering Application of the Pitching Research Template; version May 2017; Available in SSRN: https://ssrn. com/abstract=2948707.
• Gruszczyński M. (2012). Empiryczne finanse przedsiębiorstw. Mikroekonometria finansowa. Warszawa: Difin.
• Gruszczyński M. (2018a). Financial Microeconometrics as Research Methodology in Corporate Finance and Accounting, in: T. Dudycz, G. Osbert-Pociecha, B. Brycz (ed.) Efficiency in Business and Economics, Springer Proceedings in Business and Economics, 2018, p. 71–80.
• Gruszczyński M. (2018b). Badania ilościowe w finansach przedsiębiorstw – wyzwania metodyczne. Finanse, Rynki Finansowe, Ubezpieczenia, nr 1/2018 (91): 23–34.
• Kennedy P.E. (2002). Sinning in the Basement: What are the Rules? The Ten Commandments of Applied Econometrics. Journal of Economic Surveys. 16: 569–589.
• Li F. (2016). Endogeneity in CEO power: A survey and experiment. Investment Analysts Journal. 45:3, 149–162.
• Miller, M.K. (2013). The uses and abuses of matching in political science. Working Paper, George Washington University. Available as https://sites.google.com/site/mkmtwo/research.
• Roberts M.R., Whited T.M. (2013). Endogeneity in Empirical Corporate Finance, in: G. Constantinides, M. Harris, R. Stulz (ed.). Handbook of the Economics of Finance, vol 2, Amsterdam, North Holland.

Identifiers

DOI

10.7172/2353-6845.jbfe.2018.2.2

Biblioteka Nauki

2040959