Review of Quantitative Finance and Accounting

, Volume 34, Issue 1, pp 81–93 | Cite as

Binary response and logistic regression in recent accounting research publications: a methodological note

  • Wenxia Ge
  • G. A. Whitmore
Original Research


We review 31 articles in leading accounting journals that performed a logistic regression analysis for a binary dependent variable. Our review shows that many of these articles have ambiguities and errors in the presentation of the logistic regression model. We explain that incorrect presentations of the model, even in conjunction with a correct analysis, may lead to a serious misinterpretation of research findings. Two articles are critiqued to demonstrate the reporting problems. Our note is a call for improvement in model presentation and related statistical analysis in the accounting field.


Binary response variable Discriminant analysis Logistic regression Accounting research 

JEL Classification

M40 M49 



We appreciate the helpful comments from Cheng F. Lee (the editor), an anonymous referee, and workshop participants at the 2007 AAA Southeast Regional Meeting held in Atlanta, US. This research is supported in part by a research grant from the Natural Sciences and Engineering Research Council of Canada (Whitmore).


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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Asper School of BusinessUniversity of ManitobaWinnipegCanada
  2. 2.Desautels Faculty of ManagementMcGill UniversityMontrealCanada

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