{"title":"Using and Interpreting Fixed Effects Models","authors":"MATTHIAS BREUER, ED DEHAAN","doi":"10.1111/1475-679X.12559","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>Fixed effects (FE) have emerged as a ubiquitous and powerful tool for eliminating unwanted variation in observational accounting studies. Unwanted variation is plentiful in accounting research because we often use rich data to test precise hypotheses derived from abstract theories. By eliminating unwanted variation, FE reduce concerns that omitted variables bias our estimates or weaken test power. FE are not costless, though, so their use should be carefully justified by theoretical and institutional considerations. FE also transform samples and variables in ways that are not immediately apparent, and in doing so affect how we should interpret regression results. This primer explains the mechanics of FE and provides practical guidance for the informed use, transparent reporting, and careful interpretation of FE models.</p>\n </div>","PeriodicalId":48414,"journal":{"name":"Journal of Accounting Research","volume":"62 4","pages":"1183-1226"},"PeriodicalIF":4.9000,"publicationDate":"2024-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Accounting Research","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/1475-679X.12559","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Fixed effects (FE) have emerged as a ubiquitous and powerful tool for eliminating unwanted variation in observational accounting studies. Unwanted variation is plentiful in accounting research because we often use rich data to test precise hypotheses derived from abstract theories. By eliminating unwanted variation, FE reduce concerns that omitted variables bias our estimates or weaken test power. FE are not costless, though, so their use should be carefully justified by theoretical and institutional considerations. FE also transform samples and variables in ways that are not immediately apparent, and in doing so affect how we should interpret regression results. This primer explains the mechanics of FE and provides practical guidance for the informed use, transparent reporting, and careful interpretation of FE models.
固定效应（FE）已成为消除观察性会计研究中不必要变异的普遍而强大的工具。会计研究中存在大量不必要的变异，因为我们经常使用丰富的数据来检验从抽象理论中得出的精确假设。通过消除不必要的变异，FE 减少了人们对遗漏变量会使我们的估计产生偏差或削弱测试能力的担忧。不过，FE 并不是无成本的，因此在使用时应仔细考虑理论和制度因素。FE 还会以一些不易察觉的方式改变样本和变量，从而影响我们对回归结果的解释。这本入门书解释了 FE 的机制，并为知情使用、透明报告和谨慎解释 FE 模型提供了实用指导。
期刊介绍：
The Journal of Accounting Research is a general-interest accounting journal. It publishes original research in all areas of accounting and related fields that utilizes tools from basic disciplines such as economics, statistics, psychology, and sociology. This research typically uses analytical, empirical archival, experimental, and field study methods and addresses economic questions, external and internal, in accounting, auditing, disclosure, financial reporting, taxation, and information as well as related fields such as corporate finance, investments, capital markets, law, contracting, and information economics.
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