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Potential model misspecification bias: formative indicators enhancing theory for accounting researchers

Rodgers, Waymond; Guiral, Andrés

Authors

Andrés Guiral



Abstract

This paper describes why and when formative factors, in combination with reflective measures, can be used in accounting research to better represent complex theoretical constructs. We argue that the exclusive use of reflective factors constrains theory development and may lead to imprecise measurement. We provide a review of 66 published research papers from Accounting, Organization and Society, The Accounting Review, Contemporary Accounting Research, Auditing: A Journal of Practice & Theory, Accounting, Auditing, & Accountability Journal, Behavioral Research in Accounting, International Journal of Accounting, Journal of Accounting and Public Policy, Management Accounting Research, Abacus, and Journal of Management Accounting Research using Structural Equation Models (SEM) from 1992 to 2008 to illustrate improvement of misspecification bias in leading accounting journals. Our findings suggest that most of the studies modeled constructs that did not include formative indicators.

Citation

Rodgers, W., & Guiral, A. (2011). Potential model misspecification bias: formative indicators enhancing theory for accounting researchers. International Journal of Accounting, 46(1), (25-50). doi:10.1016/j.intacc.2010.12.002. ISSN 0020-7063

Journal Article Type Article
Publication Date 2011-03
Deposit Date Nov 13, 2014
Journal International Journal Of Accounting
Print ISSN 0020-7063
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 46
Issue 1
Pages 25-50
DOI https://doi.org/10.1016/j.intacc.2010.12.002
Public URL https://hull-repository.worktribe.com/output/468445
Publisher URL http://www.sciencedirect.com/science/article/pii/S0020706310001135