Fixed effects (FE) have emerged as a ubiquitous and powerful tool for eliminating unwanted variation in observational accounting studies. Unwanted variation is plentiful in accounting research because we often use rich data to test precise hypotheses derived from abstract theories. By eliminating unwanted variation, FE reduce concerns that omitted variables bias our estimates or weaken test power. FE are not costless, though, so their use should be carefully justified by theoretical and institutional considerations. FE also transform samples and variables in ways that are not immediately apparent, and in doing so affect how we should interpret regression results. This primer explains the mechanics of FE and provides practical guidance for the informed use, transparent reporting, and careful interpretation of FE models.

中文翻译：

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使用和解释固定效应模型


固定效应（FE）已成为消除观察会计研究中不必要的变化的普遍而强大的工具。会计研究中存在大量不需要的变异，因为我们经常使用丰富的数据来检验从抽象理论得出的精确假设。通过消除不需要的变化，有限元减少了遗漏变量使我们的估计产生偏差或削弱测试能力的担忧。然而，有限元并不是没有成本的，因此它们的使用应该通过理论和制度考虑来仔细证明其合理性。有限元还以不立即明显的方式转换样本和变量，从而影响我们如何解释回归结果。本入门书解释了有限元的机制，并为有限元模型的知情使用、透明报告和仔细解释提供了实用指导。