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Do t-Statistic Hurdles Need to be Raised?

Andrew Y. Chen

arXiv 21 Apr 2022 · Finance — General · publishedManagement Science (2024) · 4 citations (OpenAlex)

arXiv:2204.10275 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Many scholars have called for raising statistical hurdles to guard against false discoveries in academic publications. I show these calls may be difficult to justify empirically. Published data exhibit bias: results that fail to meet existing hurdles are often unobserved. These unobserved results must be extrapolated, which can lead to weak identification of revised hurdles. In contrast, statistics that can target only published findings (e.g. empirical Bayes shrinkage and the FDR) can be strongly identified, as data on published findings is plentiful. I demonstrate these results theoretically and in an empirical analysis of the cross-sectional return predictability literature.

Citation extraction

52
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appendix boundary found by appendix_command · 69% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Chen, A.Y., Zimmermann, T (2020) Publication bias and the cross-section of stock returns self1.000144100%
2Harvey, C.R., Liu, Y (2021) Uncovering the iceberg from its tip: A model of publication bias and p-hacking1.00094100%
3Andrews, I., Kasy, M (2019) Identification of and correction for publication bias1.00064100%
4Chen, A.Y (2021) Most claimed statistical findings in cross-sectional return predictability are likely true self1.00063100%
5Jensen, T.I., Kelly, B.T., Pedersen, L.H., Forthcoming Is there a replication crisis in finance?1.00063100%
6Chen, A.Y., Zimmermann, T (2022) Open source cross sectional asset pricing self0.9619589%
7McLean, R.D., Pontiff, J (2016) Does academic research destroy stock return predictability?0.9285480%
8Harvey, C.R., Liu, Y., Zhu, H (2016) and the cross-section of expected returns0.874122100%
9Benjamini, Y., Hochberg, Y (1995) Controlling the false discovery rate: a practical and powerful approach to multiple testing0.874112100%
10Efron, B (2012) Large-scale inference: empirical Bayes methods for estimation, testing, and prediction0.87472100%

Showing the top 10 of 52 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1High-Throughput Asset Pricing0.40511