Advancing Applicability Of Difference-In-Difference Methods Applicability In Non-Experimental Settings: An empirical analysis of karaoke's impact on hospitality venues’ return on assets in the UK

Abstract

This thesis aims to bridge the gap between theory and practice in employing the Difference-in-Differences (DiD) method within non-experimental settings.The first part of the thesis systematically explores DiD mechanisms, encompassing basic principles, assumptions, and recent advancements. Challenges such as (i) treatment timing variation, (ii) treatment effect heterogeneity, and (iii) potentially violated unconditional parallel assumptions are also addressed using the new CS estimator introduced by Callaway and Sant’Anna (2021). In the second part of the thesis, the author demonstrates the application of the CS estimator in an analysis of the impact of Karaoke rooms on hospitality venues' financial performance, offering a clear pathway for practitioners to employ and interpret DiD methodologies in their research endeavors effectively.