2021
DOI: 10.1590/1982-7849rac2021200067
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A Tutorial on the Use of Differences-in-Differences in Management, Finance, and Accounting

Abstract: Context: natural experiments or quasi-experiments have become quite popular in management research. The differences-in-differences (DiD) estimator is possibly the workhorse of these techniques. Objective: the goal of this paper is to provide a tutorial that serves as practical guide for researchers considering using natural experiments to make causal inferences. Methods: we discuss the DiD advantages, concerns, and tests of validity. We also provide an application of the technique, in which we discuss the ef… Show more

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Cited by 17 publications
(15 citation statements)
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References 32 publications
(41 reference statements)
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“…Limited research articles were published on DID application within the Maritime field. The main limitation to this technique is the non-verifiability of its assumptions (Schiozer et al 2020). This model's application to assess causal effects of endogenous and exogenous variables associated with the maritime industry may be proven challenging and may require additional methods to evaluate an intervention's impact.…”
Section: Limitationsmentioning
confidence: 99%
“…Limited research articles were published on DID application within the Maritime field. The main limitation to this technique is the non-verifiability of its assumptions (Schiozer et al 2020). This model's application to assess causal effects of endogenous and exogenous variables associated with the maritime industry may be proven challenging and may require additional methods to evaluate an intervention's impact.…”
Section: Limitationsmentioning
confidence: 99%
“…The first tutorial-article is written by Rafael Felipe Schiozer, Frederico Abou Mourad, and Theo Cotrim Martins, and the title is A tutorial on the use of differences-indifferences in management, finance, and accounting. Schiozer et al (2021) provide a discussion about some problems that researchers face when defining their empirical design and offer a solution using the differences-in-differences (DiD) method. They provide an R script, a Stata do-file, and a dataset.…”
Section: Manuscripts Published In This Special Manuscripts Published mentioning
confidence: 99%
“…Além disso, embora seja natural e regressões diff-in-diff permitam a inclusão de variáveis de controle na Equação 4 acima, deve-se evitar aquelas que por sua vez são/podem ser afetadas pelo próprio tratamento em si (Schiozer, Mourad, & Martins, 2020), questão conhecida na literatura como "bad controls".…”
Section: Estimativa Difference-in-difference -Grupos De Tratamento E ...unclassified