Addressing unobserved selection bias in accounting studies: the bias minimization method

Peel, Michael J. ORCID: https://orcid.org/0000-0002-7444-390X 2018. Addressing unobserved selection bias in accounting studies: the bias minimization method. European Accounting Review 27 (1) , pp. 173-183. 10.1080/09638180.2016.1220322

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Abstract

This note explains the minimum-biased estimator (MBE), which accounting researchers can use to analyze the robustness of regression or propensity score-matched treatment estimates to unobserved selection (endogeneity) bias. Based on the principles of the Heckman treatment model, the MBE entails estimating matched treatment effects within a range of propensity scores that minimizes unobserved selection bias. A major advantage of the MBE is that an instrumental variable is not required. The potential utility of the MBE in accounting studies is highlighted, and a familiar empirical illustration is provided.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Publisher:	Taylor & Francis
ISSN:	0963-8180
Date of First Compliant Deposit:	5 September 2016
Date of Acceptance:	28 July 2016
Last Modified:	30 Nov 2024 01:00
URI:	https://orca.cardiff.ac.uk/id/eprint/93579

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