Finance and Financial Management Commons^™

Exploring The Use Of Rasch Models To Construct Measures Of Firms’ Profitability With Multiple Discretization Ratio-Type Data, Chen Qiu

Theses and Dissertations--Education Sciences

Ratio-type data plays an important role in real-world data analysis. Mass ratios have been created for different purposes, depending on time and people’s needs. Then, it is necessary to create a comprehensive score to extract information from those mass ratios when they measure the same concept from different perspectives. Therefore, this study adopts the same logic of psychometrics to systematically conduct scale development on ratio-type data under the Rasch model. However, it is first necessary to discretize the ratio-type data for use in the Rasch model. Therefore, this study also explores the effect of different data discretization methods on scale …