Strategy research and panel data: Evidence and implications

Research output: Contribution to journalArticle

138 Scopus citations

Abstract

A number of studies in strategic management rely on panel (longitudinal) data to test theory. The advantages of panel data notwithstanding, such data introduce analytic problems (e.g., autocorrelation, heteroskedasticity, contemporaneous correlation) that make traditional estimators (e.g., ordinary least squares) inappropriate. This study highlights the influence of contemporaneous correlation, a statistical problem that affects the analysis of panel data. Using Monte Carlo simulations, the authors find that contemporaneous correlation is particularly problematic when analyzing data sets typically used in strategic management research. They suggest straightforward techniques to mitigate the harmful effects of contemporaneous correlation.

Original languageEnglish (US)
Pages (from-to)449-471
Number of pages23
JournalJournal of Management
Volume32
Issue number3
DOIs
StatePublished - Jun 1 2006
Externally publishedYes

Keywords

  • Autocorrelation
  • Contemporaneous correlation
  • Heteroskedasticity
  • Longitudinal data
  • Panel data
  • Research methodology

ASJC Scopus subject areas

  • Finance
  • Strategy and Management

Fingerprint Dive into the research topics of 'Strategy research and panel data: Evidence and implications'. Together they form a unique fingerprint.

  • Cite this