Generalised linear factor score regression : a comparison of four methods

Abstract: Factor score regression has recently received growing interest as an alternative for structural equation modelling. Two issues causing uncertainty for researchers are addressed in this thesis. Firstly, more knowledge is needed on how different approaches to calculating factor score estimates compare when estimating factor score regression models. Secondly, many applications are left without guidance because of the focus on normally distributed outcomes in the literature. This thesis examines how factor scoring methods compare when estimating regression coefficients in generalised linear factor score regression. An evaluation is made of the regression, correlation-preserving, total sum, and weighted sum method in ordinary, logistic, and Poisson factor score regression. In contrast to previous studies, both the mean and variance of loading coefficients and the degree of inter-factor correlation are varied in the simulations. A meta-analysis demonstrates that the choice of factor scoring method can substantially influence research conclusions. The regression and correlation-preserving method outperform the other two methods in terms of coefficient and standard error bias, accuracy, and empirical Type I error rates. Moreover, the regression method generally has the best performance. It is also noticed that performance can differ notably across the considered regression models.