Flashcards 43 Flashcards
Students 5 Students
Language English
Level University
Created / Updated 03.01.2018 / 17.05.2021
Licencing Not defined
0 Exact answers 33 Text answers 10 Multiple-choice answers
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Why do firms conduct empirical research?

  • Others do it too

  • Seek consensus

  • Justify decisions and opinions

  • Have knowledge and evaluation capabilities to understand the consequences of decisions

  • => decisions based on empirical research are better (measured by results)

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Three main research designs?

  1. Exploratory: helps learn more about the problem, terms and definitions, or identify research opportunities. Qualitative research

  2. Descriptive: describes the phenomena of interest. Secondary data analysis, survey research

  3. Experimental: uncovers underlying causes of a problem. Experiments
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Deductive approach?

start with a broad literature review and theory, narrow it down to specific hypotheses and test these through the collection of data.

"Classical research approach"

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Inductive approach?

move from very specific (“interesting but unexplained”) observations in our data to a detection of patterns, up to a formulation of tentative hypotheses and a theoretical framework.

"Big data approach" 

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Ethicals principles in empirical research?

  • Voluntary participation: Make sure that study participants are taking part in the study voluntarily and are not coerced.

  • Informed consent: Inform participants about the procedures and risks involved in your research and get participants consent to participate.

  • Anonymity: Assure participants that no one, including yourself, will be able to link the data to a specific individual (Not always possible. Then assure at least confidentiality)

  • Confidentiality: Assure participants that identifying information about them acquired through your study will not be released to anyone outside the study.

  • No data fabrication or manipulation

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Internal validity

  • Extent to which changes in the dependent variables(s) can be explained by the experimental manipulation and not by external factors
    => Degree to which a causal conclusion can be drawn

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Exernal validity

  • Extent to which the results of the experiment can be generalized – from sample to population
    => Degree to which findings are representative

  • => no external validity without internal validity

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Threats to internal validity (extraneous variables)?


  • History (what happens during the experiment)

  • Maturation (changes in the test units themselves)

  • Mortality (survivorship bias)

  • Instrumentation (changes to the measuring instrument)

  • Experimenter effect (reaction to the experimenter due to age, sex, race, …)

  • Socially desirable behavior and/or demand effects

  • Selection bias (due to the improper selection of test units)

  • Testing effects / reactivity (caused by the process of experimentation)

  • Regression to the mean (test units move to the mean in the process of the experiment)