The Heckman Correction for Sample Selection and Its Critique

Puhani, Patrick A.

doi:10.1111/1467-6419.00104

Cited by 853 publications

(588 citation statements)

References 30 publications

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“…It is possible that a selection bias exists because the same variables that determine outsourcing also determine performance. To tackle this problem, we use subsample OLS, a technique preferable to its alternative, the Heckman correction, under many conditions (Puhani, 2000). This implies we run separate regressions for the largest three 3-digit industries (models 2, 3, and 4) to check whether our main findings hold for these subsamples.…”

Section: Market Uncertainty Market Uncertainty Results In Variation mentioning

confidence: 99%

Outsourcing and financial performance: A negative curvilinear effect

Kotabe

Mol

2009

Journal of Purchasing and Supply Management

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This study asks how a firm's degree of outsourcing across all activities influences financial performance. We argue there is an optimal degree of outsourcing, where firms outsource some activities yet integrate others, and that deviations lower performance in a negatively curvilinear fashion. We find empirical support, using 1995 and 1998 data on a sample of manufacturing businesses in the Netherlands, and show that the steepness of the curve increases under conditions of high uncertainty. We show the magnitude of the uncertainty effect on performance outcomes through a post hoc scenario analysis. Thus we provide a specific, theoretically and empirically grounded prediction of how outsourcing affects performance with implications for theory and practice.

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Section: Market Uncertainty Market Uncertainty Results In Variation mentioning

confidence: 99%

Outsourcing and financial performance: A negative curvilinear effect

Kotabe

Mol

2009

Journal of Purchasing and Supply Management

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“…The inverse Mills ratio is calculated from the Heckman two-step estimation procedure (Puhani, 2000) and expresses unobserved characteristics of the firm. By including the inverse Mills ratio as explanatory variable in the regression analysis, one removes the selection bias part from the survey in 2011 from the error terms.…”

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confidence: 99%

Does Corporate Social Responsibility Put Reputation at Risk by Inviting Activist Targeting? An Empirical Test among European SMEs

Graafland

2017

Corp Soc Responsibility Env

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Corporate social responsibility (CSR) is believed to improve a company's reputation. However, CSR may also put reputation at risk by making the company a more attractive target for activists' campaigns. We test this effect on a sample of 1355 European small and medium-sized enterprises (SMEs). We find that CSR increases the future probability that an SME's CSR is monitored by local non-governmental organizations (NGOs) and that this moderates criticism of the SME's CSR. The results imply that SMEs that only halfheartedly implement CSR are more vulnerable to public criticism than SMEs that do not engage in CSR at all. It is advisable that SMEs only position themselves as sustainable companies if their environmental policies have proven to contribute to sustainable development. When initiating stakeholder engagement, SMEs should prevent disappointment by tempering stakeholders' expectations, as NGOs participating in a stakeholder dialogue can use inside information to raise public criticism.

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“…As observed by Puhani (2000), this problem is noticed in the probit selection model. Such a model must contain a variable that is not in the ordinary least squares (OLS) model.…”

Section: Heckman Two-stage Process (Dealing With Zero Trades)mentioning

confidence: 88%

Determinants of the Korean agricultural trade with the LDCs and the OECD countries

Lee¹,

Lim²

2014

AGR ECON-CZECH

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Abstract:Th e study aims to analyze Korea's import trade in agricultural products with (i) the least developed countries (LDCs) and (ii) the Organization for Economic Co-operation and Development (OECD) countries. Extended versions of a gravity model are adopted and the balanced panel data for the unilateral trade over the period of 2003 to 2008 are constructed using the Harmonized System Codes. Th e Heckman two-stage analysis is incorporated to detect the potential selection bias arising from many zero trades. We fi nd that only preferential tariff s on the LDCs have signifi cantly contributed to the trade fl ows. However, in contrast, gross domestic products (GDPs), free trade agreements (FTAs), the applied tariff rates, and the exchange rates turn out to be statistically signifi cant in the trade with the OECD countries, thus highlighting the possibility of the potential trade benefi ts associated with the trade policy reforms. Th e study is unique in that it empirically estimates the determinants of agricultural trade between the LDCs and developed countries and reveals the potential eff ectiveness of the preferential treatment and the implementation of the trade policy reforms.

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The Heckman Correction for Sample Selection and Its Critique

Cited by 853 publications

References 30 publications

Outsourcing and financial performance: A negative curvilinear effect

Outsourcing and financial performance: A negative curvilinear effect

Does Corporate Social Responsibility Put Reputation at Risk by Inviting Activist Targeting? An Empirical Test among European SMEs

Determinants of the Korean agricultural trade with the LDCs and the OECD countries

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