David F. Larcker's research while affiliated with Northwestern University and other places

Publication (1)

Article
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the o...

Citations

... Convergent validity was verified by computing the average variance extracted (AVE) and composite reliability (CR) for each construct. All AVE values were greater than 0.50 and CR values surpassed 0.60 (See Table 2), suggesting that the model had good convergent validity (Fornell & Larcker, 1981). The discriminant validity of the model was tested by comparing the AVE values to the squared correlations between corresponding constructs (Fornell & Larcker, 1981). ...