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View Diary: No, high CEO pay really doesn't lead to soaring stock returns (38 comments)

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  •  On a second look (2+ / 0-)
    Recommended by:
    sweatyb, Geenius at Wrok

    The use of a regression line with rankings is a bit of a statistical sin, for violating measurement level requirements.

    I completely understand, see and agree with the point, and don't really think it's totally inappropriate, but technically the use of a Gamma or similar statistic would have been preferable.

    We now return you to a discussion of the purpose and content of this diary.

    •  Or plotting pay vs. stock price increase (1+ / 0-)
      Recommended by:
      libera nos

      and drawing the regression line from that. I agree: The methodology here is suspect. I'd rather be able to back up my position with more waterproof data.

      "The great lie of democracy, its essential paradox, is that democracy is the first to be sacrificed when its security is at risk. Every state is totalitarian at heart; there are no ends to the cruelty it will go to to protect itself." -- Ian McDonald

      by Geenius at Wrok on Sat Jul 26, 2014 at 06:33:45 AM PDT

      [ Parent ]

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