Differential Audit Quality, Propensity Score Matching and Rosenbaum Bounds for Confounding Variables

2012 ◽  
pp. no-no ◽  
Author(s):  
Michael J. Peel ◽  
Gerald H. Makepeace
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Audit Quality ◽  
Confounding Variables

Do Big 4 Auditors Provide Higher Audit Quality after Controlling for the Endogenous Choice of Auditor?

2014 ◽  
Vol 33 (4) ◽  
pp. 197-219 ◽  
Author(s):  
John Daniel Eshleman ◽  
Peng Guo
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Audit Quality ◽  
Data Availability ◽  
Accounting Restatements ◽  
Big 4 ◽  
Audit Firms ◽  
Weak Evidence ◽  
Matching Procedure ◽  
Jel Classifications

SUMMARY: Recent research suggests that Big 4 auditors do not provide higher audit quality than other auditors, after controlling for the endogenous choice of auditor. We re-examine this issue using the incidence of accounting restatements as a measure of audit quality. Using a propensity-score matching procedure similar to that used by recent research to control for clients' endogenous choice of auditor, we find that clients of Big 4 audit firms are less likely to subsequently issue an accounting restatement than are clients of other auditors. In additional tests, we find weak evidence that clients of Big 4 auditors are less likely to issue accounting restatements than are clients of Mid-tier auditors (Grant Thornton and BDO Seidman). Taken together, the evidence suggests that Big 4 auditors do perform higher quality audits. JEL Classifications: M41, M42 Data Availability: All data are publicly available from sources identified in the text.

Audit Quality and Specialist Tenure

2018 ◽  
Vol 94 (3) ◽  
pp. 113-147 ◽  
Author(s):  
Jennifer J. Gaver ◽  
Steven Utke
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Audit Quality ◽  
Discretionary Accruals ◽  
Data Availability ◽  
Client Characteristics ◽  
Industry Specialization ◽  
Auditor Industry Specialization ◽  
Big 4 ◽  
Jel Classifications

ABSTRACT We argue that the association between auditor industry specialization and audit quality depends on how long the auditor has been a specialist. We measure audit quality using absolute discretionary accruals, income-increasing discretionary accruals, and book-tax differences. Our results, based on a sample of Big 4 audit clients from 2003–2015, indicate that auditors who have only recently gained the specialist designation produce a level of audit quality that does not surpass that produced by non-specialist auditors, and is generally lower than the audit quality produced by seasoned specialists. We estimate that the seasoning process takes two to three years. In contrast to prior research that finds no effect of specialization after propensity score matching, we find that seasoned specialists generally produce higher-quality audits than other auditors even after matching. This suggests that the audit quality effect associated with seasoned industry specialist auditors is not due to differences in client characteristics. JEL Classifications: M42. Data Availability: Data used in this study are available from public sources identified in the text.

scholarly journals Do minimum wages improve self-rated health? Evidence from a natural experiment

2021 ◽  
Author(s):  
Lucas Hafner ◽  
Benjamin Lochner
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Minimum Wage ◽  
Survey Data ◽  
Natural Experiment ◽  
Time Pressure ◽  
Working Hours ◽  
Difference In Differences ◽  
Self Rated Health ◽  
Confounding Variables

AbstractWe analyze whether the introduction of the general minimum wage in Germany in 2015 had an effect on workers’ self-rated health. To this end, we use survey data linked to administrative employment records and apply difference-in-differences regressions combined with propensity score matching. This approach enables us to control for a vast set of potential confounding variables. We find a health improving effect among the individuals who were most likely to be affected by the reform. Our results indicate that workers’ improved satisfaction with pay, their reduced working hours, and a reduction in time pressure at work may drive this result.

scholarly journals A Case-Control of Patients with COVID-19 to Explore the Association of Previous Hospitalisation Use of Medication on the Mortality of COVID-19 Disease: A Propensity Score Matching Analysis

2022 ◽  
Vol 15 (1) ◽  
pp. 78
Author(s):  
Jaime Monserrat Villatoro ◽  
Gina Mejía-Abril ◽  
Lucía Díaz García ◽  
Pablo Zubiaur ◽  
María Jiménez González ◽  
...  
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Inhaled Corticosteroids ◽  
The Elderly ◽  
Case Control ◽  
Retrospective Case ◽  
Oral Rehydration ◽  
Propensity Score Matching Analysis ◽  
Confounding Variables ◽  
Oral Rehydration Salts

Data from several cohorts of coronavirus disease 2019 (COVID-19) suggest that the most common comorbidities for severe COVID-19 disease are the elderly, high blood pressure, and diabetes; however, it is not currently known whether the previous use of certain drugs help or hinder recovery. This study aims to explore the association of previous hospitalisation use of medication on the mortality of COVID-19 disease. A retrospective case-control from two hospitals in Madrid, Spain, included all patients aged 18 years or above hospitalised with a diagnosis of COVID-19. A Propensity Score matching (PSM) analysis was performed. Confounding variables were considered to be age, sex, and the number of comorbidities. Finally, 3712 patients were included. Of these, 687 (18.5%) patients died (cases). The 22,446 medicine trademarks used previous to admission were classified according to the ATC, obtaining 689 final drugs; all of them were included in PSM analysis. Eleven drugs displayed a reduction in mortality: azithromycin, bemiparine, budesonide-formoterol fumarate, cefuroxime, colchicine, enoxaparin, ipratropium bromide, loratadine, mepyramine theophylline acetate, oral rehydration salts, and salbutamol sulphate. Eight final drugs displayed an increase in mortality: acetylsalicylic acid, digoxin, folic acid, mirtazapine, linagliptin, enalapril, atorvastatin, and allopurinol. Medication associated with survival (anticoagulants, antihistamines, azithromycin, bronchodilators, cefuroxime, colchicine, and inhaled corticosteroids) may be candidates for future clinical trials. Drugs associated with mortality show an interaction with the underlying conditions.

scholarly journals Analysis of Effects of Agriculture Intervention Using Propensity Score Matching

2015 ◽  
Vol 3 (2) ◽  
pp. 49
Author(s):  
Peter Josephat ◽  
Rose Likangaga
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Agricultural Sector ◽  
Investment Project ◽  
Primary Data ◽  
Corn Production ◽  
Rural Tanzania ◽  
Confounding Variables ◽  
Household Assets ◽  
Agriculture Extension

Nowadays, the agriculture extension programmes are practiced in many parts of the world. There is a mixture of results about the effects of agriculture intervention programmes. The literature shows that the interventions are ineffective and have limited diffusion. On the other side, it shows that interventions are effective. Following different arguments about the effects of agriculture extension, this paper adopted Propensity Score Matching (PSM) to analyze the effects of District Agricultural Sector Investment Project (DASIP) using agriculture data.  The study was conducted in rural Tanzania areas. It covered five regions namely Kagera, Mwanza, Mara, Simiyu and Kigoma. The study focused on agro-ecological zone where corn is cultivated. Two methods which are questionnaire administration and direct oral interview were used to collect primary data. The collection of data using the questionnaire was done from both participants (359) and non-participants (519). Before running the independent t test, the estimation of propensity score was done using Logistic regression. Thirteen confounding variables were used to estimate propensity scores.The effects of the intervention were analysed by considering four items namely the earnings from corn production, value of livestock owned, value of household assets owned, and value of farm assets owned. The results show that none of the four factors had significant result as the p values are greater than 0.05. This implies that the earning between farmers participating in DASIP are not significant different from those who do not participate in the programme. The study recommends that the group activities should last longer rather than changing them from time to time. 

scholarly journals Pre-service Teachers in Germany’s Pluralistic Scholarship System and Their Motivations for Becoming Teachers

2018 ◽  
Author(s):  
Martin Drahmann ◽  
Samuel Merk ◽  
Colin Cramer ◽  
Martin Rothland
Keyword(s):  
Teacher Education ◽  
Propensity Score ◽  
Propensity Score Matching ◽  
Data Preprocessing ◽  
Future Research ◽  
Parametric Data ◽  
Confounding Variables ◽  
Scholarship Program ◽  
Talented Students ◽  
Non Parametric

Germany has a unique scholarship program for highly talented students. The present study identifies differences between supported and non-supported pre-service teachers in this program and focuses on their motivations. A survey of N = 703 pre-service teachers (n = 279 supported) forms the basis of the analysis. Using a non-parametric data preprocessing approach (matching individuals), differences in motivations to become a teacher were modelled in these two balanced groups. The results show significant differences between supported and unsupported pre-service teachers in terms of their motivations for becoming teachers; however, there are no differences after propensity score matching and consideration of confounding variables. The findings indicate that a closer look at the subgroups of pre-service teachers is needed, and the results are therefore relevant to research on teacher education and the support of highly talented pre-service teachers. Future research should account for longitudinal approaches and the scholarship programs’ impact.

Besondere Förderung von Kern- kompetenzen an Spezialgymnasien?

2010 ◽  
Vol 24 (1) ◽  
pp. 5-22 ◽  
Author(s):  
Jürgen Baumert ◽  
Michael Becker ◽  
Marko Neumann ◽  
Roumiana Nikolova
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching

Der vorliegende Beitrag geht der Frage nach, ob Schülerinnen und Schüler, die nach der vierten Klasse in Berlin in ein grundständiges Gymnasium wechseln, in Abhängigkeit vom Profil des besuchten Gymnasiums im Vergleich zu Grundschülern mit vergleichbaren Lernvoraussetzungen unterschiedliche Lernzuwächse im Leseverständnis, in Mathematik und Englisch erreichen. Auf der Datengrundlage der ELEMENT-Studie wurde die Leistungsentwicklung von Schülerinnen und Schülern an grundständigen Gymnasien (N = 1758) und Grundschulen (N = 3169) während der 5. und 6. Jahrgangsstufe mithilfe von Propensity Score Matching-Analysen (PSM) modelliert. Nach Kontrolle von leistungsrelevanten Unterschieden zwischen den Schülergruppen am Ende der 4. Jahrgangsstufe zeigten sich für das Leseverständnis am Ende der 6. Klasse keine statistisch signifikanten Unterschiede. Für die Mathematikleistung ließen sich Unterschiede lediglich zugunsten eines grundständigen Gymnasiums, das zum Untersuchungszeitpunkt noch kein spezifisches Profil entwickelt hatte, nachweisen. In der Domäne Englisch, in der die curricularen Unterschiede zwischen den Schulzweigen stärker akzentuiert sind, wurden positive Ergebnisse im Vergleich zu den Grundschulen für die so genannten Schnellläuferzüge, die englisch-bilingualen Klassen und das grundständige Gymnasium ohne spezifisches Profil ermittelt. Die Lernstände am Ende der 6. Klasse in den altsprachlichen Gymnasien fielen dagegen im Vergleich zu den Grundschulen geringer aus. Die Befunde widersprechen der Annahme, dass mit dem frühen Übergang auf ein grundständiges Gymnasium automatisch eine besondere Förderung der Lesefähigkeit und des mathematischen Verständnisses besonders leistungsfähiger Schülerinnen und Schüler erreicht werde. Die Ergebnisse zu den Englischleistungen weisen hingegen darauf hin, dass Unterschiede in der Leistungsentwicklung auftreten können, sofern die Aufteilung auf Schulen mit unterschiedlichen Bildungsprogrammen mit curricularen Unterschieden im Unterricht einhergeht. Methodische und inhaltliche Implikationen der Befunde und Grenzen ihrer Generalisierbarkeit werden diskutiert.

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