Uncovering Hidden Biases: How Panel Data Analysis Can Transform Business Strategies
Endogeneity bias can mess up research results, but using the Generalized Method of Moments (GMM) can help fix it. A study looked at data from UK companies over 15 years to see how R&D spending, corporate governance, and company traits affect performance. The GMM method showed different results compared to the usual OLS approach, revealing important differences in findings. This method can help marketing researchers better understand and control for tricky biases in their studies.