The reluctance to use PLS in accounting research perhaps may be due to a lack of understanding of PLS's benefits and applicability in accounting research. PLS, like other SEM techniques, enables a set of relationships among one or more independent variables and one or more dependent variables to be examined in a comprehensive model.
Whereas traditional regression may require separate regression equations to analyze each hypothesized relationship, PLS allows the system of equations to be analyzed simultaneously.
In addition, PLS and other SEMทtechniques allowทfor the analysis of both directlทmeasured variables and latent variables.