Selection Models in Accounting Research

• 成果类型: Article
• 署名作者: Lennox, Clive S.; Francis, Jere R.; Wang, Zitian
• 署名单位: Nanyang Technological University; University of Missouri System; University of Missouri Columbia
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-10195
• 发表日期: 2012
• 页码: 589-616
• 关键词: earnings management; sample selection; auditor choice; instrumental variables; economic consequences; Ownership structure; INTERNAL CONTROL; QUALITY; FIRMS; disclosure

摘要

This study explains the challenges associated with the Heckman (1979) procedure to control for selection bias, assesses the quality of its application in accounting research, and offers guidance for better implementation of selection models. A survey of 75 recent accounting articles in leading journals reveals that many researchers implement the technique in a mechanical way with relatively little appreciation of important econometric issues and problems surrounding its use. Using empirical examples motivated by prior research, we illustrate that selection models are fragile and can yield quite literally any possible outcome in response to fairly minor changes in model specification. We conclude with guidance on how researchers can better implement selection models that will provide more convincing evidence on potential selection bias, including the need to justify model specifications and careful sensitivity analyses with respect to robustness and multicollinearity.