Instrumental variable (IV) methods are commonly used in accounting research (e.g., earnings management, corporate … the standard textbook solution to mitigating endogeneity problems, the appropriateness of IV methods in typical accounting …

This paper examines the approaches accounting researchers adopt to draw causal inferences using observational (or … nonexperimental) data. The vast majority of accounting research papers draw causal inferences notwithstanding the well … methods also make strong assumptions that are not always fully appreciated. We believe that accounting research would benefit …