Using partial least squares in archival accounting research: an application to earnings quality measuring

Despite the advantages of Structural Equation Modelling (SEM) over regression models that have contributed to its popularisation in several fields of research in social sciences, it has not been broadly applied in archival accounting research. In this paper, we present a guidance for the application...

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Detalles Bibliográficos
Autor: Licerán-Gutiérrez, Cano Rodríguez, Manuel Ana
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2019
País:España
Institución:Universidad de Jaén
Repositorio:RUJA. Repositorio Institucional de la Producción Científica de la Universidad de Jaén
OAI Identifier:oai:ruja.ujaen.es:10953/1161
Acceso en línea:https://hdl.handle.net/10953/1161
Access Level:acceso abierto
Palabra clave:Structural equation models (SEM)
partial least squares (PLS)
earnings dimensions
earnings quality
Descripción
Sumario:Despite the advantages of Structural Equation Modelling (SEM) over regression models that have contributed to its popularisation in several fields of research in social sciences, it has not been broadly applied in archival accounting research. In this paper, we present a guidance for the application of SEM – and, particularly, the Partial Least Squares (PLS) method – to the (arguably) most recurrent topic on empirical archival accounting research: earnings quality. We highlight several problems that arise in earnings quality measuring, indicating how PLS can help to overcome them. We also run a simulation process whose results show that PLS method outperforms the other approaches even in situations of limited information.