Distortion Effects and Extreme Observations in Empirical Research: An Analysis of the Incremental Information Content of Cash Flows

C.R. Wilson

Working Papers from Melbourne - Centre in Finance

Abstract: Linear regression models have been used in a number of studies examining the presence or absence of incremental information contents in cash flow. The results of these studies have not been consistent. This paper draws attention to the critical issue of extreme observations in the data. Extreme observations which exert undues influence on the parameter estimates in a regression model are shown ti cause results which whilst statistically significant may be invalid.

Keywords: LINEAR MODELS; REGRESSION ANALYSIS; CAPITAL MARKET (search for similar items in EconPapers)
JEL-codes: C20 C22 E22 G10 (search for similar items in EconPapers)
Pages: 20 pages
Date: 1996
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:melrfi:96-1

Access Statistics for this paper

More papers in Working Papers from Melbourne - Centre in Finance Centre in Finance, Department of Economics and Finance, Faculty of Business, RMIT GPO Box 2476V Melbourne, Vic 3000 Australia.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().