Broken Effects? How to Reduce False Positives in Panel Regressions

The authors contributed equally and are listed in alphabetical order. The authors thank Michaël Bikard, Javier Gimeno, Hyunjin Kim, Henning Piezunka, Andrew Shipilov, and Jihai Yu as well as seminar participants at INSEAD, IE Madrid, and the 2021 SMS annual meeting for helpful comments. Special thanks to the editor Myles Shaver and two anonymous reviewers for very helpful and constructive feedback throughout the review process. P.D. Wibbens thanks Todd Gormley, whose course “Empirical methods in corporate finance” at Wharton provided an important source of inspiration for this paper. Any errors remain our own.