Next Article in Journal
Covariance Prediction in Large Portfolio Allocation
Next Article in Special Issue
Interval-Based Hypothesis Testing and Its Applications to Economics and Finance
Previous Article in Journal
Measures of Dispersion and Serial Dependence in Categorical Time Series
Previous Article in Special Issue
Not p-Values, Said a Little Bit Differently
Open AccessArticle

Important Issues in Statistical Testing and Recommended Improvements in Accounting Research

1
Accounting Department, Cornell University, Ithaca, NY 14850, USA
2
Accounting Department, Rice University, Houston, TX 77005, USA
*
Author to whom correspondence should be addressed.
Econometrics 2019, 7(2), 18; https://doi.org/10.3390/econometrics7020018
Received: 17 December 2018 / Revised: 23 April 2019 / Accepted: 26 April 2019 / Published: 8 May 2019
(This article belongs to the Special Issue Towards a New Paradigm for Statistical Evidence)
A great deal of the accounting research published in recent years has involved statistical tests. Our paper proposes improvements to both the quality and execution of such research. We address the following limitations in current research that appear to us to be ignored or used inappropriately: (1) unaddressed situational effects resulting from model limitations and what has been referred to as “data carpentry,” (2) limitations and alternatives to winsorizing, (3) necessary improvements to relying on a study’s calculated “p-values” instead of on the economic or behavioral importance of the results, and (4) the information loss incurred by under-valuing what can and cannot be learned from replications. View Full-Text
Keywords: model specification; model testing; reporting results (p-values); replications model specification; model testing; reporting results (p-values); replications
MDPI and ACS Style

Dyckman, T.R.; Zeff, S.A. Important Issues in Statistical Testing and Recommended Improvements in Accounting Research. Econometrics 2019, 7, 18.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop