Journal of Accounting and Economics Vol. 12 No. 1-3 1990
Aggregation of test statistics
Abstract
More powerful tests of a theory of choice of accounting methods and the effect of changes in these choices on equity values are provided. The power increase comes from efficiently aggregating results across studies. One conclusion is that at least six variables common to more than one study have explanatory power. These variables are managerial compensation, leverage, size, risk, and constraints on interest coverage and dividends. Another conclusion is that the posterior probability that the theory taken as a whole has explanatory power is close to one. This conclusion includes the effect of variables that only appear in one study.
- DOI
- 10.1016/0165-4101(90)90039-7
- Volume
- 12
- Issue
- 1-3
- Pages
- 15-36
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref