# kaal:claim:2389416-019

**Claim.** The linear regression models are jointly valid on the F-statistic but their explanatory power measured by R-squared remains very limited, with R-squared values of roughly 0.003 to 0.014.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- linear models with and without the AUM dummy

**Source quote.**

> The F-statistics support the validity of the models, while the explanatory power, measured by the R-squared is still very limited.

**From.** Wulf A. Kaal, Barbara Luppi, Sandra Paterlini, *Did the Dodd-Frank Act Impact Hedge Fund Performance* (2014), 5.1. Linear Regression

**Cite as.** Wulf A. Kaal, Barbara Luppi, Sandra Paterlini, Did the Dodd-Frank Act Impact Hedge Fund Performance (2014). SSRN: https://ssrn.com/abstract=2389416

**Verify.** sha256 of source PDF `0e1c4615b104821577498d9655de43b9c5c3e985bb0215f56c038b8232be65c3` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20et%20al.%20-%202014%20-%20Did%20the%20Dodd-Frank%20Act%20Impact%20Hedge%20Fund%20Performance.pdf

**Failure mode.** Low explanatory power of linear specification  (family: research-design-limitation)

**Topics.** research-methods

**Keywords.** model-fit, r-squared, linear-regression, limitations

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2816408-023

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