Replication Data for: A tutorial on the use of differences-in-differences in management, finance and accounting research

Context: natural experiments or quasi-experiments have become quite popular in management research. The Differences-in-Differences (DiD) estimator is possibly the workhorse of these techniques. Objective: the goal of this paper is to provide a tutorial that serves as practical guide for researchers considering using natural experiments to make causal inferences. Methods: we discuss the DiD advantages, concerns, and tests of validity. We also provide an application of the technique, in which we discuss the effect of government guarantees on banks´ degree of risk, using the 2008 financial crisis as a natural experiment. The database used, as well as the Stata and the R scripts containing the analyses are available as online appendices. Conclusion: DiD may be used to tackle endogeneity concerns when treatment assignment is random.