Has Accounting Really Lost Its Value Relevance?

ABSTRACT Prominent accounting research finds that the value relevance of accounting has declined significantly over time, leading to calls for substantial changes to accounting/disclosure practices. However, I find that the claimed decline in value relevance is not robust across reasonable methodological variations. Conflicting findings in prior value relevance research are likely caused by methodological differences, especially the choice of sample period. I further find lower and declining value relevance for certain subgroups of firms, such as young firms, but these firms mostly form a declining proportion of US‐listed firms over time, explaining why aggregate value relevance remains essentially unchanged.