Estimating accounting and finance models with Microsoft Excel

Purpose – The purpose of this paper is to propose a way to introduce regression analysis into courses with minimal start-up time. Doing so makes it less likely that introducing both the software and the estimation technique will create discontinuity in the flow of the material being covered. Design/methodology/approach – This paper discusses an Excel workbook that reduces the amount of time students must use to become adept at estimating model parameters. Findings – The workbook provides a set of macros that guides students through the implementation of ordinary least squares (OLS) estimation and provides them with information that is not part of standard Excel output. It also conducts high-low analysis. Originality/value – Using this program can reduce the difficulties encountered in having students conduct the valuable exercise of model estimation.