Significance Testing in Accounting Research: A Critical Evaluation Based on Evidence.

From a survey of the papers published in leading accounting journals in 2014, we find that accounting researchers conduct significance testing almost exclusively at a conventional level of significance, without considering key factors such as the sample size or power of a test. We present evidence t...

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Publicado en:Abacus Vol. 54; no. 4; pp. 524 - 547
Autores principales: Kim, Jae H., Ahmed, Kamran, Ji, Philip Inyeob
Formato: Artículo
Publicado: Wiley-Blackwell Dec2018
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Significance Testing in Accounting Research: A Critical Evaluation Based on Evidence.
      aug:
        au:
          Kim, Jae H.
          Ahmed, Kamran
          Ji, Philip Inyeob
        affil:
          La Trobe University
          Dongguk University Seoul
      su:
        Quantitative research
        Scientific community
        Data analysis
        Empirical research
        Accounting methods
      sug:
        subj:
          Quantitative research
          Scientific community
          Data analysis
          Empirical research
          Accounting methods
      keyword:
        Bayesian inference
        Research credibility
        Sample size
        Statistical power
        Statistical significance
      ab: From a survey of the papers published in leading accounting journals in 2014, we find that accounting researchers conduct significance testing almost exclusively at a conventional level of significance, without considering key factors such as the sample size or power of a test. We present evidence that a vast majority of the accounting studies favour large or massive sample sizes and conduct significance tests with the power extremely close to or equal to one. As a result, statistical inference is severely biased towards Type I error, frequently rejecting the true null hypotheses. Under the 'p‐value less than 0.05' criterion for statistical significance, more than 90% of the surveyed papers report statistical significance. However, under alternative criteria, only 40% of the results are statistically significant. We propose that substantial changes be made to the current practice of significance testing for more credible empirical research in accounting.
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    language: English
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