Using partial least squares in archival accounting researchan application to earnings quality measuring

  1. Ana Licerán-Gutiérrez 1
  2. Manuel Cano-Rodríguez 1
  1. 1 Universidad de Jaén
    info

    Universidad de Jaén

    Jaén, España

    ROR https://ror.org/0122p5f64

Revista:
Revista española de financiación y contabilidad

ISSN: 0210-2412

Año de publicación: 2020

Volumen: 49

Número: 2

Páginas: 143-170

Tipo: Artículo

DOI: 10.1080/02102412.2019.1608705 DIALNET GOOGLE SCHOLAR

Otras publicaciones en: Revista española de financiación y contabilidad

Objetivos de desarrollo sostenible

Resumen

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.

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