The Issue of Endogeneity within Theory-Based, Quantitative Management Accounting Research
Year: 2007
Type: article
Abstract: A current issue of potential concern in theory-based management accounting research is the extent to which endogeneity limits the validity of empirical testing of models. This paper aims to stimulate debate as to the meaning of endogeneity as it applies to (management) accounting research. The paper explains what endogeneity is, its causes and consequences, and potential ways of managing the problem. Specifically, the paper argues that an econometric definition of endogeneity clarifies its meaning in empirical research. A series of basic issues that concern endogeneity and theory construction are presented. These include omitted variables, simultaneity, equilibrium conditions and issues concerning choice variables. Finally, possible approaches for dealing with endogeneity are presented.
Source: European Accounting Review
Authors: Robert H. Chenhall, Frank Moers
Institutions: Monash University, James Cook University, Maastricht University
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2124192815