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error term in a regression equation.
Because of a two-tier board model in Poland, we estimate several regression models, separate for the management and the supervisory board [ Bohdanowicz, 2015 , p. 1423], in which the dependent variable being a mark of forecast accuracy takes a different form. Table 1 summarizes all the types of variables we used in our study.
The variable definition
Panel A: Dependent variables
Earnings forecast error
Absolute earnings forecast error
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fictitious case, it clearly demonstrates the fact that this indicator does not behave as intuitively expected, and worse it does not measure what it (probably) is supposed to measure. The problem lies in the parameter O W .
Calculations related to Example A; the indicator F is introduced further on.
New situation: Country 2 publishes 17,000 articles less in other domains
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authority for measuring and evaluating business performance according to attributes of the Z-MESOT method. The application of the responsibility and authority as a necessary element of competences in the management process enables to interlink the organisation’s requirements and the employee’s opportunities in a way that permits their development in mutual harmony and to ensure the organisation’s competitiveness (Königová & Hron, 2012; Szczepańska-Woszczyna et al., 2015 ). The competency-based approach in Performance Management System (PMS) focuses on the behaviour and