MATCHED PAIRS DISCRIMINATION: METHODOLOGY AND AN INVESTIGATION OF CORPORATE ACCOUNTING POLICIES

Abstract
The matched‐pairs methodology is becoming increasingly popular as a means of controlling extraneous factors in business research. This paper develops discriminant procedures for matched data and examines the properties of these methods. Data from a recent study by Hunt [14] on the determinants of inventory method choice are used to contrast the performance of the different methods. While all of the methods yield the same set of discriminating variables, those procedures that allow for the dependence among observations within a pair provide greater classificatory power than traditional multivariate techniques.

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