TY  - BOOK
AU  - deHaan, Ed
AU  - Moon, James
AU  - Shipman, Jonathan
AU  - Swanquist, Quinn
AU  - Whited, Robert
TI  - Control variables in interactive models
KW  - accounting research
KW  - interactions
KW  - control variables
N1  - ABSTRACT: 

Accounting studies often examine whether the relation between X and Y varies with a moderating variable, M, by including an interactive term, X x M, in a regression. We provide plain-English guidance on why, how, and when to use control variables, Z, in interaction tests. A simulation and simple descriptions demonstrate how interacted controls affect coefficient estimates and interpretations. In particular, we demonstrate how controlling for Z without an accompanying interaction of X x Z and/or M x Z generally does not eliminate the confounding effect of Zon X x M. We conclude with guidance for future research
ER  -