Is There a Replication Crisis inFinance?

ArXiv ID: ssrn-3774514 “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: 8.0/10
• Empirical Rigor: 9.0/10
• Quadrant: Holy Grail
• Why: The paper employs a complex Bayesian statistical model for joint factor estimation, involving advanced priors and shrinkage methods, indicating high mathematical density. It also demonstrates high empirical rigor through extensive global backtesting on a new large dataset (93 countries) and provides open-source data access, making it highly data and implementation-heavy.

  flowchart TD
    A["Research Goal<br>Replicability in Finance?"] --> B["Methodology<br>Replicate 200+ Studies"]
    A --> C["Data Input<br>Prominent Finance Journals"]
    B --> D["Computational Process<br>Statistical Test & Meta-Analysis"]
    C --> D
    D --> E["Key Findings<br>High Failure Rate<br>Significant Publication Bias"]