Strategy Research and Panel Data: Evidence and Implications

A number of studies in strategic management rely on panel (longitudinal) data to test theory. The advantages of panel data notwithstanding, such data introduce analytic problems (e.g., autocorrelation, heteroskedasticity, contemporaneous correlation) that make traditional estimators (e.g., ordinary...

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Veröffentlicht in:Journal of management 2006-06, Vol.32 (3), p.449-471
Hauptverfasser: Certo, S. Trevis, Semadeni, Matthew
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Semadeni, Matthew
description A number of studies in strategic management rely on panel (longitudinal) data to test theory. The advantages of panel data notwithstanding, such data introduce analytic problems (e.g., autocorrelation, heteroskedasticity, contemporaneous correlation) that make traditional estimators (e.g., ordinary least squares) inappropriate. This study highlights the influence of contemporaneous correlation, a statistical problem that affects the analysis of panel data. Using Monte Carlo simulations, the authors find that contemporaneous correlation is particularly problematic when analyzing data sets typically used in strategic management research. They suggest straightforward techniques to mitigate the harmful effects of contemporaneous correlation.
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subjects Correlation analysis
Data analysis
Monte Carlo simulation
Research methodology
Strategic management
Studies
title Strategy Research and Panel Data: Evidence and Implications
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