Size Scale Effects in Capital Market Research; Applications and Obstacles

Size in accounting research is interesting topic for researchers. Some results vary with changes in triables size (in accounting, triables are often companies) or some interpretations regardless of the size can not be properly justified. However, in doing any research into the effects of size is said scale effects and to analytical problems that arise due to different size of triables (in accounting research of capital market, companies) is said problems of scale. This paper reviews the literature on the effects of scale with emphasis on size as scale factor in the accounting research of capital market that such a review has not been conducted in the literature up to now. This study includes review of types of scale effects, evaluating treatment ways for scale and impact of scale on the R2 of model. The results of this study suggest that researchers should be cautious in identifying the effects of scale. Also econometric topics are essential in accounting research.