This paper uses a sample of the regression and behavioral papers
published in The Accounting Review and the Journal of Accounting Research from
September 2012 through May 2013. We argue first that the current research results
reported in empirical regression papers fail adequately to justify the time period adopted
for the study. Second, we maintain that the statistical analyses used in these papers as
well as in the behavioral papers have produced flawed results. We further maintain that
their tests of statistical significance are not appropriate and, more importantly, that these
studies do not—and cannot—properly address the economic significance of the work. In
other words, significance tests are not tests of the economic meaningfulness of the
results. We suggest ways to avoid some but not all of these problems. We also argue
that replication studies, which have been essentially abandoned by accounting
researchers, can contribute to our search for truth, but few will be forthcoming unless
the academic reward system is modified.