Partial Least Squares Structural Equation Modeling

Empirical studies that use structural equation modeling sem are widespread in information systems research.

Partial least squares structural equation modeling. We model this transmission of systemic risk from shadow banking to the regulated banking sector rbs using a set of indicators directly observable. During the last few years the component based approach partial least squares pls for testing structural models has become increasingly popular. Structural equation modeling sem includes a diverse set of mathematical models computer algorithms and statistical methods that fit networks of constructs to data. The authors aim to present partial least squares pls as an evolving approach to structural equation modeling sem highlight its advantages and limitations and provide an overview of recent research on the method across various fields.

This book pulls together robust practices in partial least squares structural equation modeling pls sem from other disciplines and shows how they can be used in the area of banking and finance. Pls pm is a component based estimation approach that differs from the covariance based structural equation modeling. Sem includes confirmatory factor analysis confirmatory composite analysis path analysis partial least squares path modeling and latent growth modeling. In this review article the authors merge literatures from the marketing management and management information systems fields to present the.

In terms of empirical analysis techniques banking and finance is a conservative discipline. Featuring the latest research new examples and expanded. The concept should not be confused with the related concept of. Partial least squares structural equation modeling pls sem has become a popular method for estimating complex path models with latent variables and their relationships.

In a first application of partial least squares structural equation modeling pls sem in financial stress testing we demonstrate how pls sem can be used to explain the transmission of systemic risk.