Accounting

The accounting area is preeminent in research and teaching related to the dissemination and use of information in markets and within firms.

Faculty affiliated with the area are worldwide leaders in scholarship and in their contributions to accounting pedagogy. They also help shape accounting practices in the United States and elsewhere as a result of their influence in the standard-setting process.

Research by the accounting faculty draws on economics, finance, and statistics and employs analytical and empirical methodologies to study issues such as:

  • The pricing of securities in capital markets, with a focus on the role of financial reporting and information intermediaries.
  • The design of performance measurement and incentive systems.
  • Best practices in corporate governance and executive compensation.

Faculty in the area teach in the MBA, Stanford MSx, Executive Education, and PhD programs, with courses focusing on two broad areas: financial reporting and management control. Beyond the core MBA classes, a wide variety of electives cover topics in global financial reporting, financial statement analysis, and accounting-based valuation techniques.

Recent Publications in Accounting

David F. Larcker, Brian Tayan
CGRI Survey Series. Corporate Governance Research Initiative, Stanford Rock Center for Corporate Governance, November
2019

In October 2019, the Rock Center for Corporate Governance at Stanford University conducted a nationwide survey of 3,062 individuals — representative by age, race, political affiliation, household income, and state...

Kevin Smith
Review of Financial Studies. October
2019, Vol. 32, Issue 10, Pages 4042-4078

In this paper, I develop a model in which risk-averse investors possess private information regarding both a stock’s expected payoff and its risk. These investors trade in the stock...

Charles M. C. Lee, Yuanyu Qu, Tao Shen
Journal of Corporate Finance. October
2019, Vol. 58, Pages 92-111

We study firms that go public through reverse mergers (RMs) versus initial public offerings (IPOs) in China. Using a manually assembled data set, we show that pre-listing RM firms are...

Stanford Closer Look|
David F. Larcker, Brian Tayan
Stanford Closer Look Series. Corporate Governance Research Initiative, October
2019

A reliable system of corporate governance is considered to be an important requirement for the long-term success of a company. Unfortunately, after decades of research, we still do not have...

Wayne Guay, John D. Kepler, David Tsui
Journal of Financial Economics. August
2019, Vol. 133, Issue 2, Pages 441-471

Given CEOs’ substantial equity portfolios, much recent literature on CEO incentives regards cash-based bonus plans as largely irrelevant, begging the question of why nearly all CEO compensation plans include such...