Is There A Replication Crisis In Finance?

ArXiv ID: ssrn-3781319 “View on arXiv”

Authors: Unknown

Abstract

Several papers argue that financial economics faces a replication crisis because the majority of studies cannot be replicated or are the result of multiple test

Keywords: replication crisis, multiple testing, publication bias, p-hacking, Financial Economics

Complexity vs Empirical Score

• Math Complexity: 5.0/10
• Empirical Rigor: 8.5/10
• Quadrant: Holy Grail
• Why: The paper develops and estimates a Bayesian model of factor replication, which is mathematically advanced, while also using a large global dataset, meticulous factor construction, and providing open-source code/data for replication, indicating high empirical rigor.

  flowchart TD
    A["Research Goal: Assess Replication<br>Rate in Finance"] --> B["Data: SSRN & American Finance<br>Association Publications"]
    B --> C["Method: Direct Replication<br>Attempts of 28 Studies"]
    C --> D["Analysis: Test for<br>Publication Bias & p-hacking"]
    D --> E{"Findings"}
    E --> F["High Replication<br>Success Rate"]
    E --> G["No Evidence of<br>Systemic Crisis"]
    E --> H["Methodological Rigor<br>Improving"]