Meta-Analysis in Finance Research: Opportunities, Challenges, and Contemporary Applications

44 Pages Posted: 23 Oct 2019 Last revised: 26 May 2020

See all articles by Jerome Geyer-Klingeberg

Jerome Geyer-Klingeberg

University of Augsburg - Institute of Materials Resource Management

Markus Hang

University of Augsburg

Andreas Rathgeber

University of Augsburg - Institute of Materials Resource Management

Date Written: May 26, 2020

Abstract

The number of empirical research studies in finance exhibits a strong upward trajectory, producing large differences in empirical results, which often impedes the drawing of consistent conclusions in relation to the phenomenon under examination. This creates demand for methods like meta-analysis that objectively consolidate and evaluate previous empirical findings. Meta-analysis is a group of statistical methods to aggregate prior empirical studies, to discover and explain consistencies as well as inconsistencies within reported results, and to detect and filter out distorting effects from publication selection or model misspecification. While meta-analysis is a standard tool for research synthesis and evidence-based decisions in many related research disciplines, like management, marketing, or economics, it has been rarely applied in finance. The goal of this article is to provide a comprehensive overview and discussion of the opportunities of meta-analytical research in finance, to present its recent applications, as well as to discuss related challenges and limitations. Thereby, we aim at increasing the awareness and acceptance of meta-analysis in finance and stimulating its future application in the field.

Keywords: meta-analysis, meta-regression, synthesis, publication bias, financial economics

JEL Classification: G00, C83

Suggested Citation

Geyer-Klingeberg, Jerome and Hang, Markus and Rathgeber, Andreas, Meta-Analysis in Finance Research: Opportunities, Challenges, and Contemporary Applications (May 26, 2020). International Review of Financial Analysis, Forthcoming, 2020, DOI: 10.1016/j.irfa.2020.101524, Available at SSRN: https://ssrn.com/abstract=3469150 or http://dx.doi.org/10.2139/ssrn.3469150

Jerome Geyer-Klingeberg (Contact Author)

University of Augsburg - Institute of Materials Resource Management ( email )

University of Augsburg
Universitätsstr. 2
Augsburg, 86159
Germany
(+49) 821 598-3046 (Phone)

Markus Hang

University of Augsburg ( email )

Universitätsstr. 2
Werner-von-Siemens-Straße 6
Augsburg, 86159
Germany
0049 821 5983042 (Phone)

HOME PAGE: http://www.mrm.uni-augsburg.de/gruppen/rathgeber/Team/markus_hang/

Andreas Rathgeber

University of Augsburg - Institute of Materials Resource Management ( email )

Augsburg, 86159
Germany

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