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ORCID

Marek Gruszczyński 0000-0001-8946-0713

Keywords

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

Abstract

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.

First Page

45

Last Page

51

Page Count

7

Received Date

14 May 2018

Revised Date

17 July 2018

Accept Date

23 July 2018

Online Available Date

22 August 2018

DOI

10.7172/2353-6845.jbfe.2018.2.2

JEL Code

C50; C58; G30; M40

Publisher

University of Warsaw

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