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STATA

Earnings Management / Accrual Management in Stata

Earning is one of the most important factors affecting economic decisions and the users of financial statements (stockholders and stakeholders). Users always pay special attention to accounting profit, therefore the users’ awareness of the reliability of earnings and profit can help them in making better decisions about profitability and analyzing financial statements. In preparing financial […]

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Two-Stage Least Squares (2SLS) Regression in Stata

Introduction Many econometric models often get afflicted by what is called the endogeneity problem. This happens when one or more independent variables are correlated with the error term (omitted variable bias), or when the dependent and independent variables jointly determine each other (simultaneity bias). This problem needs to be addressed because in the presence of

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