A Variance Decomposition Primer for Accounting Researchers
Posted: 9 Mar 2009
Date Written: March 7, 2009
This pedagogical note introduces the accounting-based variance decomposition methodology of Vuolteenaho (2002) in a relatively simple format for the edification of accounting scholars and Ph.D. students who wish to use variance decomposition in their research. In addition to presenting an example that explicates the variance decomposition approach, we provide well-documented SAS and STATA programs for estimating variance decompositions from cross-sectional time-series data.
Keywords: Variance Decomposition, SAS, STATA
JEL Classification: A23, M41, G14
Suggested Citation: Suggested Citation