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Journal Articles

Principal Component Analysis and Factor Analysis in Accounting Research

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Kristian D. Allee, Chuong Do, Fellipe G. Raymundo
Journal: Journal of Financial Reporting
Journal of Financial Reporting (2022) 7 (2): 1–39.
https://doi.org/10.2308/JFR-2021-005
Published: 01 September 2022
...Kristian D. Allee; Chuong Do; Fellipe G. Raymundo ABSTRACT Principal component analysis (PCA) and factor analysis (FA) are both variable reduction techniques used to represent a set of observed variables in terms of a smaller number of variables. While both PCA and FA are similar along several...
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Includes: Supplementary data