Paper Title
The Effect of Omitted Variable Bias on Regression Analysis to Empirical Accounting Research

Abstract
This study examines the industry effect on financial variables and models the relation between financial variable and industry characteristic variables by econometrics approach. The results of this research show the following. Theoretical evidence gives economic meaning to the regression coefficients of industry dummy variables and suggests effectiveness of the industrial dummy variable as the control variable. It suggests that intercept coefficient estimates industry effect on financial variable for base group, and that each slope coefficient estimates additional industry effect on financial variable for each group. Furthermore, to control industry effect, it is only necessary to insert industry dummy variables to the regression model.In other words, we do not need to identify and measure industry characteristic variables. Keywords - Value Relevance Research; Omitted Variable Bias; Industry Dummy Variable; Capital Markets-Based Accounting Research