Question: Describe the principal idea behind a dummy variable regression and illustrate the use of a dummy variable regression in accounting research by referring to some

Describe the principal idea behind a dummy variable regression and illustrate the use of a dummy variable regression in accounting research by referring to some of the empirical studies. Explain how a dummy variable regression could be employed to test the prediction that the Earnings Response Coefficient varies between pre-IFRS and post-IFRS periods.

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