• DOI:10.1016/J.JACCECO.2009.11.004
Corpus ID: 16824451

On the Use of Instrumental Variables in Accounting Research

@article{Larcker2010OnTU,
  title={On the Use of Instrumental Variables in Accounting Research},
  author={David F. Larcker and T. Rusticus},
  journal={Journal of Accounting and Economics},
  year={2010},
  volume={49},
  pages={186-205}
}

David F. Larcker, T. Rusticus

Published 2010

Economics

Journal of Accounting and Economics

Instrumental variable (IV) methods are commonly used in accounting research (e.g., earnings management, corporate governance, executive compensation, and disclosure research) when the regressor variables are endogenous. While IV estimation is the standard textbook solution to mitigating endogeneity problems, the appropriateness of IV methods in typical accounting research settings is not obvious. Drawing on recent advances in statistics and econometrics, we identify conditions under which IV… CONTINUE READING

View via Publisher

isiarticles.com

Save to Library

Create Alert

Cite

Launch Research Feed