The Issue of Endogeneity within Theory-Based, Quantitative Management Accounting Research
A current issue of potential concern in theory-based management accounting research is the extent to which endogeneity limits the validity of empirical testing of models. This paper aims to stimulate debate as to the meaning of endogeneity as it applies to (management) accounting research. The paper explains what endogeneity is, its causes and consequences, and potential ways of managing the problem. Specifically, the paper argues that an econometric definition of endogeneity clarifies its meaning in empirical research. A series of basic issues that concern endogeneity and theory construction are presented. These include omitted variables, simultaneity, equilibrium conditions and issues concerning choice variables. Finally, possible approaches for dealing with endogeneity are presented.
Volume (Year): 16 (2007)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REAR20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REAR20|
When requesting a correction, please mention this item's handle: RePEc:taf:euract:v:16:y:2007:i:1:p:173-196. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst)
If references are entirely missing, you can add them using this form.