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Moderating effects of management control systems and innovation on performance. Simple methods for correcting the effects of measurement error for interaction effects in small samples

In the accounting literature, interaction or moderating effects are usually assessed by means of OLS regression and summated rating scales are constructed to reduce measurement error bias. Structural equation models and two-stage least squares regression could be used to completely eliminate this bias, but large samples are needed. Partial Least Squares are appropriate for small samples but do not correct measurement error bias. In this article, disattenuated regression is discussed as a small sample alternative and is illustrated on data of Bisbe and Otley (in press) that examine the interaction effect of innovation and style of use of budgets on performance. Sizeable differences emerge between OLS and disattenuated regression

Universitat de Girona. Departament d’Economia

Other contributions: Universitat de Girona. Departament d’Economia
Author: Coenders, Germà
Bisbe, Josep
Saris, Willem E.
Batista Foguet, Joan Manuel
Abstract: In the accounting literature, interaction or moderating effects are usually assessed by means of OLS regression and summated rating scales are constructed to reduce measurement error bias. Structural equation models and two-stage least squares regression could be used to completely eliminate this bias, but large samples are needed. Partial Least Squares are appropriate for small samples but do not correct measurement error bias. In this article, disattenuated regression is discussed as a small sample alternative and is illustrated on data of Bisbe and Otley (in press) that examine the interaction effect of innovation and style of use of budgets on performance. Sizeable differences emerge between OLS and disattenuated regression
Document access: http://hdl.handle.net/2072/14650
Language: eng
Publisher: Universitat de Girona. Departament d’Economia
Rights: Aquest document està subjecte a una llicència Creative Commons: Reconeixement – No comercial – Sense obra derivada (by-nc-nd)
Rights URI: http://creativecommons.org/licenses/by-nc-nd/3.0/deed.ca
Subject: Anàlisi d’error (Matemàtica)
Mesurament
Anàlisi de regressió
Title: Moderating effects of management control systems and innovation on performance. Simple methods for correcting the effects of measurement error for interaction effects in small samples
Type: info:eu-repo/semantics/workingPaper
Repository: Recercat

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