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Regression analysis of proportions in finance with self selection
Journal article   Peer reviewed

Regression analysis of proportions in finance with self selection

Douglas O. Cook, Robert Kieschnick and B.D. McCullough
Journal of empirical finance, v 15(5), pp 860-867
2008

Abstract

Capital structure Proportions Zero-inflated beta
Numerous papers in finance study the conditional mean of some proportion or fraction with a mass point at zero. We argue that most, if not all, of these studies use mis-specified statistical models, especially when firms or individuals choose to not do something for different reasons. To address these issues, we develop a new statistical model, the zero-inflated beta model, and apply it to the analysis of corporate capital structure decisions to demonstrate its applicability.

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Collaboration types
Domestic collaboration
Web of Science research areas
Business, Finance
Economics
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