Dasgupta, 2019, p.2610 used an approach called "prediction model"
by only using pre-leniency observations and predict the probability that the firm will be convicted in the cartel case after the passage of a leniency law.
First, we estimate the propensity of a firm to be convicted in a cartel case. We use a prediction model based on time-varying firm characteristics (asset size, leverage, and ROA), country characteristics (GDP and unemployment), and country fixed effects and three-digit SIC fixed effects.
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