19696: Endogeneity: Myths, Legends, and Facts – Fifth Annual

Management scholars are often concerned about biases in empirical analyses from endogeneity. When endogeneity is present, any model that does not account for the source of endogeneity will provide biased coefficient estimates. Thus, scholars strive to address potential endogeneity in their research. Yet, scholars do not share a common understanding of endogeneity and often implement questionable solutions in response to their perceived concerns. Our target audience is Academy members who lack confidence in dealing with endogeneity or want to improve their methodological ‘tool kit.’ This PDW will provide a learning opportunity about different topics related to endogeneity and how to address it correctly. To do so, we explore the myths, legends, and facts about endogeneity. The PDW will be divided into two parts. Part 1 consists of a selection of presentations on different issues related to endogeneity. Specifically, Dr. Aaron Hill will discuss foundational elements of endogeneity and bridging the methods-practice divide, Dr. John Busenbark will discuss the variety and function of two-stage models, Dr. Trevis Certo will discuss endogeneity in the context of panel/nested data, and Dr. Abhinav Gupta will share editor’s view of endogeneity in the field. In Part 2, the panelists will answer questions from the audience, from which we will facilitate a scholarly conversation about their views on endogeneity. With this PDW, we hope scholars will understand endogeneity better and learn when and how to account for endogeneity in producing high-quality, credible, and replicable scientific research.