pdf - Nyenrode Business Universiteit
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4.4. ANALYSES 109<br />
RPE and RFMO. Moreover, in line with the base model, RFMO is driven by goal ambiguity<br />
(positively), measurability of outputs (negatively), and decentralization of decision<br />
rights. However, the relation between information asymmetry and RFMO is marginally insignificant<br />
(one-tailed p-value = 0.13). The results of the robustness check are summarized<br />
in table 4.13.<br />
Table 4.13: Results of SEM Analysis (RPE-based-Targets)<br />
Panel A - base model results Coefficient Std. Error Critical Ratio Prob.<br />
RPE use > RFMO 0.136 0.059 2.422 0.02 ‘a’<br />
Inf. Asymmetry > RFMO 0.071 0.075 1.150 0.13 ‘a’<br />
Inf. Asymmetry > RPE use 0.007 0.070 0.114 0.46 ‘a’<br />
Goal Ambiguity > RFMO 0.184 0.135 2.685 0.00 ‘a’<br />
Meas. of Outputs > RFMO -0.206 0.119 -2.866 0.00 ‘a’<br />
Decentralization > RFMO 0.118 0.060 1.921 0.03 ‘a’<br />
Dummy prod. > RFMO 0.092 0.170 1.581 0.11<br />
Dummy fin. serv. > RFMO 0.002 0.177 0.030 0.98<br />
Dummy N.F.P. > RFMO 0.009 0.176 0.143 0.89<br />
‘a’ : variable based on directional expectation; significance calculated as onetailed<br />
p-value<br />
Panel B - base model fit statistics<br />
Chi 2 = 19.436 goodness-of-fit statistics<br />
Degrees of freedom = 6 GFI = 0.985<br />
Probability level = .003 AGFI = 0.888<br />
CFI = 0.948<br />
Multivariate normality RMR = 0.030<br />
Kurtosis 2.783 (c.r. 1.643) RMSEA = 0.090<br />
Panel C - bootstrap results<br />
Bootstrap samples = 500 Bollen-Stine bootstrap p = 0.025<br />
4.4.2.3 Endogeneity Analysis<br />
Similar to the previous chapter, this chapter’s dependent variable may be jointly determined<br />
with one of the independent variables. This relation exists between room for managerial<br />
opportunism and RPE use because RPE use can reduce the room for managerial<br />
opportunism, but increased room for opportunism can also induce organizational reliance<br />
on RPE. As described in chapter 3, this possibility raises endogeneity concerns. Endogeneity<br />
is a key limitation in most empirical research (Ittner & Larcker 2001). Endogeneity is