The bulk of the high quality empirical scientific research in finance and accounting  relies on large publicly available data which are often acquired by Universities at a substantial cost. Sometimes, researchers also use proprietary data to conduct their investigation and are successful in publishing their findings in high quality journals using confidential data. However, these studies are impossible to replicate because data are not publicly available.

Unfortunately, as we know from economic theory, reliance on proprietary (private) information (data) creates differential information environment which then leads to  moral hard problems and perverse behavior. A well-known accounting professor and noted scholar recently was found guilty of “fabricating” proprietary data which may have lead to dubious results. The top accounting academic journals retracted about 30 articles published by this individual who relied on questionable proprietary data to draw inferences about important and relevant auditing and accounting practices.

This anecdotal evidence is, and should be, a prime example why the cornerstone of high quality and rigorous scientific research is contingent on others being able replicate existing scientific findings.

For more details read the following article in Washington Post.

http://www.washingtonpost.com/news/morning-mix/wp/2015/06/30/citing-misconduct-accounting-journal-retracts-25-articles-by-once-renowned-scholar/

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