Dealing with dynamic endogeneity in international business research

• 成果类型: Editorial Material
• 署名作者: Li, Jiatao; Ding, Haoyuan; Hu, Yichuan; Wan, Guoguang
• 署名单位: Hong Kong University of Science & Technology; Shanghai University of Finance & Economics; East China Normal University; Nanjing University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-020-00398-8
• 发表日期: 2021
• 页码: 339-362
• 关键词: dynamic endogeneity; simulations; fixed effects estimators; generalized method of moments; international business research

摘要

Dynamic endogeneity occurs when the current values of a study's independent variables are affected by the past values of the dependent variables, which can lead to biased estimates. Our analysis of 80 empirical papers published in the Journal of International Business Studies uncovers cases of inappropriate treatment of dynamic endogeneity. Our simulations reveal factors that lead to bias in a fixed effects estimator and highlight the advantages and disadvantages of the system generalized method of moments estimator. We demonstrate our points with an empirical study of the impact of the international experience of managers and board members on firm internationalization. We show how using a fixed effects estimator rather than a generalized method of moments estimator can lead to differences in regression results. We also show the proper use of a generalized method of moments estimator.