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Keywords: residuals
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Journal Articles
Journal:
Journal of Financial Reporting
Journal of Financial Reporting (2022) 7 (1): 69–83.
Published: 01 March 2022
...Wei Chen; Paul Hribar; Samuel J. Melessa ABSTRACT We discuss some pitfalls associated with using residuals as dependent variables in accounting research. We provide basic intuition for why the typical implementation of this procedure generates biased coefficients and standard errors that can lead...
