Improving the wide-area PMU-based fault location method using ordinary least squares estimation

The raise regression has been proposed as an alternative to ordinary least squares estimation when a model presents collinearity. In order to analyze whether the problem has been mitigated, it is necessary to develop measures to detect collinearity after the application of the raise regression. This paper extends the concept of the variance inflation factor to be applied in a raise regression. The relevance of this extension is that it can be applied to determine the raising factor which allows an optimal application of this technique. The mean square error is also calculated since the raise regression provides a biased estimator. The results are illustrated by two empirical examples where the application of the raise estimator is compared to the application of the ridge and Lasso estimators that are commonly applied to estimate models with multicollinearity as an alternative to ordinary least squares.

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Auditors’ response to corporate fraud: evidence from audit fees and auditor turnover

Managerial Auditing Journal ◽

10.1108/maj-12-2019-2515 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Eugenia Yujin Lee ◽

Wonsuk Ha

Keyword(s):

Least Squares ◽

Design Methodology ◽

Audit Fees ◽

Ordinary Least Squares ◽

Least Squares Estimation ◽

Regulatory Requirements ◽

Audit Pricing ◽

Corporate Fraud ◽

Content Type ◽

Practical Implications

Purpose This study aims to examine how auditors respond to the revelation of clients’ corporate fraud. Design/methodology/approach This study uses an ordinary least squares estimation to examine how audit fees and audit turnover change after the revelation of corporate fraud. Findings After a client discloses fraudulent activities, average audit fees significantly increase due to an increase in audit hours, rather than in audit premiums. Both new and continuing auditors increase audit hours for fraud firms, but only new auditors charge higher audit fees for the increased effort. In addition, when auditors are designated by regulators following the revelation of fraud, audit fees and premiums increase, but audit hours do not. Finally, auditor turnover becomes more frequent after the revelation of fraud. Overall, the findings suggest that auditors update their assessment of audit risks after fraud revelation and, thus, adjust their audit pricing and client acceptance decisions. Practical implications The study provides regulators and audit practitioners with insights into how to audit contract characteristics and regulatory intervention (auditor designations) affect auditors’ response to increased audit risks. Originality/value The study contributes to the auditing literature and practice by providing evidence on how auditors respond to the revelation of fraudulent activities and how their response depends on their ability to determine audit fees. Moreover, we provide novel evidence that audit contracting characteristics and regulatory requirements result in different responses of auditors toward changes in audit risks.

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PREDICTING URBAN LAND PRICES: A COMPARISON OF FOUR APPROACHES

International Journal of Strategic Property Management ◽

10.3846/1648-715x.2008.12.217-236 ◽

2008 ◽

Vol 12 (4) ◽

pp. 217-236 ◽

Cited By ~ 10

Author(s):

Marko Hannonen

Keyword(s):

Least Squares ◽

House Price ◽

Predictive Testing ◽

Ordinary Least Squares ◽

Urban Land ◽

Least Squares Estimation ◽

Local Regression ◽

Land Prices ◽

Structural Time Series ◽

Mm Estimation

This paper investigates forecasting accuracy of four different hedonic approaches, when vacant urban land prices are predicted in local markets. The investigated hedonic approaches are: 1) ordinary least squares estimation, 2) robust MM‐estimation, 3) structural time series estimation and 4) robust local regression. Post‐sample predictive testing indicated that more accurate predictions are obtained if the unorthodox methods of this paper are used instead of the conventional least squares estimation. In particular, the predictive unbiassness can significantly be improved when using the unconventional hedonic methods of the study. The paper also studied the structure of urban land prices. The most important attribute variables in explaining land prices were permitted building volume, house price index, northing and easting. The influence of parcel size variable and different indicator variables on land prices were much weaker. Santrauka Nagrinėjama, kokiu tikslumu keturi skirtingi hedonistiniai metodai prognozuoja laisvų žemės plotų kainas vietinėse miestų rinkose. Nagrinėti tokie hedonistiniai metodai: 1) mažiausiųjų kvadratų metodas, 2) daugybinių modelių vertinimas, 3) struktūrinių laiko eilučių vertinimas, 4) lokalinė regresinė analizė. Post-sample prognostinis testas parodė, kad tikslesnės prognozės gaunamos taikant netradicinius šiame darbe nurodytus metodus, o ne įprastą mažiausiųjų kvadratų metodą. Taikant netradicinius hedonistinius tyrimo metodus, gali gerokai padidėti prognozių nešališkumas. Darbe nagrinėta ir žemės kainų mieste struktūra. Aiškinant žemės kainas iš būdingų kintamųjų svarbiausi buvo leidžiamas pastato dydis, būsto kainų indeksas, sklypo padėtis. Sklypo dydžio kintamasis ir įvairių rodiklių kintamieji žemės kainoms turėjo daug mažesnę įtaką.

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Ordinary Least Squares Estimation Versus Other Criteria of Estimation: Justification for Using the Methodology Presented in This Book

Cross-Over Experiments ◽

10.1201/9780367813208-8 ◽

2020 ◽

pp. 353-396

Author(s):

David A. Ratkowsky ◽

Marc A. Evans ◽

J. Richard Alldredge

Keyword(s):

Least Squares ◽

Ordinary Least Squares ◽

Least Squares Estimation

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Gender diversity and financial performance of Islamic banks

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-03-2020-0061 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Huthayfa Nabeel Jabari ◽

Rusnah Muhamad

Keyword(s):

Financial Performance ◽

Least Squares ◽

Gender Diversity ◽

Estimation Method ◽

Supervisory Board ◽

Ordinary Least Squares ◽

Least Squares Estimation ◽

Islamic Banks ◽

Content Type ◽

Gender Diverse

Purpose The purpose of this paper is to examine the influence of gender diversity among the board of directors (BOD) and Shariah supervisory board (SSB) members on the financial performance of Islamic banks in Indonesia and Malaysia. Design/methodology/approach Data for a sample of 19 Islamic banks for the period 2010–2018 were collected to test the research hypotheses using pooled ordinary least squares estimation method. Generalized least squares estimation method was used to confirm that the results are robust. This study lagged the explanatory variables by one period to control for potential endogeneity. Findings The findings suggest that Islamic banks with more gender-diverse BOD and SSB are expected to have better financial performance. In addition, this paper finds that an increase in Islamic banks’ size may undermine the positive impact of gender diversity among SSB members on Islamic banks’ financial performance. Research limitations/implications This study was conducted only on Islamic banks in Indonesia and Malaysia owing to data constraints; thus, the results may not be generalizable to Islamic banks in other countries. Practical implications Improving financial performance is crucial for banks, especially for Islamic banks, to sustain their fast-growing share globally. Therefore, the findings of this study are expected to provide insight and understanding in the selection and appointment of BOD and SSB members at Islamic banks. Social implications By having women represented in the BOD and SSB, Islamic banks will benefit equally from valuable abilities across demographic groups in the society. Furthermore, if the members of the BOD and SSB are properly selected, Islamic banks with more gender-diverse boards can effectively contribute to enhancing social welfare of various segments in the society. Originality/value This is the first study, as far as is known to the authors, that provides empirical evidence on the influence of gender diversity among BOD and SSB members on the financial performance of Islamic banks. This paper is expected to be used as a reference by the shareholders and customers of Islamic banks in ensuring that the BOD and SSB have the best optimal composition that maximizes their profits.

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