A Tutorial on the Use of Differences-in-Differences in Management, Finance, and Accounting

ABSTRACT Context: natural experiments or quasi-experiments have become quite popular in management research. The differences-in-differences (DiD) estimator is possibly the workhorse of these techniques. Objective: the goal of this paper is to provide a tutorial that serves as practical guide for researchers considering using natural experiments to make causal inferences. Methods: we discuss the DiD advantages, concerns, and tests of validity. We also provide an application of the technique, in which we discuss the effect of government guarantees on banks’ degree of risk, using the 2008 financial crisis as a natural experiment. The database used, as well as the Stata and the R scripts containing the analyses, are available as online appendices. Conclusion: DiD may be used to tackle endogeneity concerns when treatment assignment is random.

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Do Crises Hit Female-Managed and Male-Managed Firms Differently? Evidence from the 2008 Financial Crisis

10.1596/34458 ◽

2020 ◽

Author(s):

Tanima Ahmed ◽

Silvia Muzi ◽

Kohei Ueda

Keyword(s):

Financial Crisis ◽

2008 Financial Crisis ◽

The 2008 Financial Crisis

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Mathematics without Apologies

10.23943/princeton/9780691175836.001.0001 ◽

2017 ◽

Cited By ~ 2

Author(s):

Michael Harris

Keyword(s):

Number Theory ◽

Financial Crisis ◽

Pop Culture ◽

First Century ◽

2008 Financial Crisis ◽

Dinner Party ◽

Mathematical Life ◽

Personal Experiences ◽

The 2008 Financial Crisis ◽

Guided Tour

What do pure mathematicians do, and why do they do it? Looking beyond the conventional answers, this book offers an eclectic panorama of the lives and values and hopes and fears of mathematicians in the twenty-first century, assembling material from a startlingly diverse assortment of scholarly, journalistic, and pop culture sources. Drawing on the author's personal experiences as well as the thoughts and opinions of mathematicians from Archimedes and Omar Khayyám to such contemporary giants as Alexander Grothendieck and Robert Langlands, the book reveals the charisma and romance of mathematics as well as its darker side. In this portrait of mathematics as a community united around a set of common intellectual, ethical, and existential challenges, the book touches on a wide variety of questions, such as: Are mathematicians to blame for the 2008 financial crisis? How can we talk about the ideas we were born too soon to understand? And how should you react if you are asked to explain number theory at a dinner party? The book takes readers on an unapologetic guided tour of the mathematical life, from the philosophy and sociology of mathematics to its reflections in film and popular music, with detours through the mathematical and mystical traditions of Russia, India, medieval Islam, the Bronx, and beyond.

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