The Impact of Outliers on Regression Coefficients: A Sensitivity Analysis

IF 2 Q2 BUSINESS, FINANCE International Journal of Accounting Pub Date : 2021-07-03 DOI:10.1142/S1094406021500141
Dongyi Wang
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Abstract

Empirical research analyzes real-life data that often do not conform to a normal distribution with statistical tools such as linear regressions that require the assumption of normality. The lack of conformity to a known statistical distribution requires researchers to handle outliers properly. Accounting studies typically treat outliers with a “delete-and-forget” approach, which assumes that extreme values are erroneous and results remain insensitive to the deletion of a small number of observations. Results in this study refute these assumptions by showing that the ambiguity in handling outliers and variable selection motivates researchers to explore various analytic alternatives, which in turn produce unstable regression coefficients and heightened false-positive rates.
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异常值对回归系数的影响:敏感性分析
实证研究使用需要假设正态的线性回归等统计工具来分析经常不符合正态分布的真实数据。与已知统计分布不一致需要研究人员正确处理异常值。会计研究通常采用“删除并忘记”的方法来处理异常值,该方法假设极值是错误的,并且结果对删除少量观察结果仍然不敏感。这项研究的结果反驳了这些假设,表明处理异常值和变量选择的模糊性促使研究人员探索各种分析替代方案,这反过来又会产生不稳定的回归系数和更高的假阳性率。
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来源期刊
CiteScore
1.20
自引率
0.00%
发文量
19
期刊介绍: The aim of The International Journal of Accounting is to advance the academic and professional understanding of accounting theory, policies and practice from the international perspective and viewpoint. The Journal editorial recognizes that international accounting is influenced by a variety of forces, e.g., governmental, political and economic. Thus, the primary criterion for manuscript evaluation is the incremental contribution to international accounting literature and the forces that impact the field. The Journal aims at understanding the present and potential ability of accounting to aid in analyzing and interpreting international economic transactions and the economic consequences of such reporting. These transactions may be within a profit or non-profit environment. The Journal encourages a broad view of the origins and development of accounting with an emphasis on its functions in an increasingly interdependent global economy. The Journal also welcomes manuscripts that help explain current international accounting practices, with related theoretical justifications, and identify criticisms of current policies and practice. Other than occasional commissioned papers or special issues, all the manuscripts published in the Journal are selected by the editors after the normal double-blind refereeing process.
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