David F Larcker

James Irvin Miller Professor of Accounting

Professor of Law (by courtesy), Stanford Law School

Morgan Stanley Director of the Center for Leadership Development and Research

Co-director of the Directors' Consortium Executive Program

Senior Faculty of the Arthur and Toni Rembe Rock Center for Corporate Governance at Stanford

Winnick Family Faculty Fellow for 2013-14

Phone: (650) 725-6159

Email: dlarcker@gsb.stanford.edu

Personal Homepage: http://faculty-gsb.stanford.edu/larcker/index.html

CV: LarckerCV

Academic Areas: Accounting

Professor Larcker’s research focuses on executive compensation, corporate governance, and managerial accounting. His work examines the choice of performance measures and compensation contracts in organizations. He has current research projects on the valuation implications of corporate governance, role of the business press in the debate on executive compensation, and modeling the cost of executive stock options.


Professor Larcker presently holds the James Irvin Miller Professorship. He is the director of the Corporate Governance Research Program at the Stanford Graduate School of Business and senior faculty of the Arthur and Toni Rembe Rock Center for Corporate Governance at Stanford University. Professor Larcker was previously the Ernst & Young Professor of accounting at the Wharton School of the University of Pennsylvania and Professor of accounting and information systems at the Kellogg Graduate School of Management at Northwestern University. He received his PhD in Business from the University of Kansas and his BS and MS in Engineering from the University of Missouri- Rolla.

He is on the editorial boards of the Journal of Accounting and Economics, Journal of Accounting Research, Accounting, Organizations and Society, Journal of Accounting and Public Policy, Journal of Applied Corporate Finance. Professor Larcker received the Notable Contribution to Managerial Accounting Research in 2001.

Academic Degrees

PhD, University of Kansas, 1978; MS, University of Missouri-Rolla, 1974; BS, University of Missouri-Rolla, 1972.

Professional Experience

At Stanford since 2005. Ernst & Young Professor of Accounting, The Wharton School, University of Pennsylvania, 1985-2005; Assistant Professor - Professor, J.L. Kellogg Graduate School of Management, Northwestern University, 1978-85.

Selected Publications

  • Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences: FT Press-Pearson Prentice Hall, 2011
  • David F. Larcker, Gaizka Ormazabal, and Daniel J. Taylor: The Market Reaction to Corporate Governance Regulation: Journal of Financial Economics 101, 2011
  • Ittner, C. D., D. F. Larcker, and T. Randall, “Performance Implications of Strategic Performance Measurement in Financial Service: Accounting, Organizations and Society, Vol. 28, Nos. 7-8 (October/November, 2003), pp. 715-741, 2003
  • Ittner, C. D., R, A. Lambert, and D. F. Larcker, “The Structure and Performance Consequences of Equity Grants to Employees of New Economy Firms: Journal of Accounting and Economics, Vol. 34, Nos. 1-3 (January, 2003), pp. 89-127, 2003
  • Larcker, D. F. and S. A. Richardson, “Fees Paid to Audit Firms, Accrual Choices, and Corporate Governance,”: Journal of Accounting Research, Vol. 42, No. 3 (June, 2004), pp. 625-658, 2004
  • Larcker, David F.,: Journal of Economics & Management Strategy, 14(2), 339-376, 38p, 2006
  • C.D. Ittner, David F. Larcker, and M. Pizzini. Perfomance-Based Compensation in Professional Service Firms: An examination of medical group practices: Journal of Accounting and Economics. Vol. 43, 2007
  • Larcker, David F., and Richardson, Scott A., Corporate Governance, Accounting Outcomes and Organizational Performance: The Accounting Review. October, Vol. 82 Issue 4, p963-1008, 46p, 2007
  • Armstrong, Chris S., Jagolinzer D., Larcker, David F: Timing of Employee Stock Option Exercises and the Cost of Stock Option Grants.: Available at SSRN. June 1, 2007
  • Larker, David F., and Rusticus, Tjomme O.: Endogeneity and Empirical Accounting Research: European Accounting Review, Vol. 16, No. 1, pp207-215, May, 2007
  • The Relation between Equity Incentives and Misreporting: The Role of Risk-Taking Incentives: Journal of Financial Economics, 2013
  • Boardroom Centrality and Stock Returns: Journal of Accounting & Economics 55, 2013
  • Detecting Deceptive Discussions in Conference Calls: Journal of Accounting Research 50, 2012
  • Corporate Governance, Compensation Consultants, and CEO Pay Levels: Review of Accounting Studies 17, 2012
  • The Influence of Proxy Advisory Firm Voting Recommendations on Say-on-Pay Votes and Executive Compensation Decisions: The Conference Board Directors Note, March, 2012
  • Rating the ratings: How good are commercial governance ratings?: Journal of Financial Economics, Vol. 98,(December 2010), pp. 439-461, 2010
  • David F. Larcker, Gaizka Ormazabal, and Daniel J. Taylor: The Market Reaction to Corporate Governance Regulation: Journal of Financial Economics 101, 2011

Working Papers

  • 2077: Proxy Advisory Firms and Stock Option Exchanges: The Case of Institutional Shareholder Services
  • 2049: Endogenous Selection and Moral Hazard In Compensation Contracts
  • 2059: The Market Reaction to Corporate Governance Regulation
  • 2060: Detecting Deceptive Discussions in Conference Calls
  • 2061: Boardroom Centrality and Stock Returns
  • 2068: Corporate Governance, Compensation Consultants, and CEO Pay Levels
  • 2052: Performance-Based Incentives for Internal Monitors
  • 2032: The Incentives for Tax Planning
  • 2036: The Stock Market's Pricing of Customer Satisfaction
  • 2097: The Efficacy of Shareholder Voting: Evidence from Equity Compensation Plans
  • 2105: The Economic Consequences of Proxy Advisor Say-on-Pay Voting Policies

Selected Cases

  • CG11: Models of Corporate Governance: Who's the Fairest of Them All?
  • CG15: Selecting a CEO: The Leader, The Business Builder, or the Technologist
  • CG16: The Management of Berkshire Hathaway
  • CG17A: Royal Dutch/Shell: A Shell Game with Oil Reserves (A)
  • CG17B: Royal Dutch/Shell: A Shell Game with Oil Reserves - Governance Overhaul After Scandal (B)
  • CG19: Equity on Demand: The Netflix Approach to Compensation
  • CG20B: Sharks in the Water: Battling an Activist Investor for Corporate Control (B)
  • CG21: Multimillionaire Matchmaker: An Inside Look At CEO Succession Planning
  • CGRP-15: Tesla Motors: The Evolution of Governance from Inception to IPO
  • CGRP-14: The Resignation of David Sokol: Mountain or Molehill for Berkshire Hathaway?
  • CGRP-13: Do ISS Voting Recommendations Create Shareholder Value?
  • CGRP-12: CEO Health Disclosure at Apple: A Public or Private Matter
  • CGRP-06: Proxy Access: A Sheep, or Wolf in Sheep's Clothing?
  • CGRP-05: CEO Succession Planning: Who's Behind Door Number One?
  • CGRP-16: Seven Myths of Corporate Governance
  • CGRP-17: Seven Myths of Executive Compensation
  • CGRP19: Scarlet Letter: Are the CEOs and Directors of Failed Companies "Tainted"?
  • CGRP-03: Lehman Brothers: Peeking under the Board Facade
  • CGRP-02: Berkshire Hathway: The Role of Trust in Governance
  • CGRP20: The NCAA Adopts "Dodd-Frank": A Fable
  • CGRP22: What Does It Mean for an Executive To Make $1Million?
  • CGRP24: Sudden Death of a CEO: Are Companies Prepared When Lightning Strikes?
  • CGRP26: Ten Myths of 'Say on Pay'
  • CGRP-08: Director Networks: Good for the Director, Good for Shareholders
  • CGRP23: What Is CEO Talent Worth?
  • CGRP25: Monitoring Risks Before They Go Viral: Is it Time for the Board to Embrace Social Media?
  • CGRP-09: Pro Forma Earnings: What's Wrong with GAAP?
  • CGRP-04: A Historical Look at Compensation and Disclosure: Cool and Refreshing!
  • CGRP-01: RiskMetrics: Uninvited Guest at the Equity Table
  • CGRP21: Leadership Challenges at Hewlett-Packard: Through the Looking Glass
  • CGRP-18: Are Current CEOs The Best Board Members?
  • CG06: Sovereign Bancorp and Relational Investors: The Role of the Activist Hedge Fund
  • CG5: Executive Compensation at Nabors Industries: Too Much, Too Little, or Just Right?
  • CG07: There's a New Sheriff in Town: Institutional Shareholder Services
  • CG14: Executive Compensation at Aquila: Moving Utility Services to Power Trading
  • CG08: Corporate Governance Ratings: Got the grade... What was the test?
  • CGRP-11: Pledge (and Hedge) Allegiance to the Company
  • CG10: 10b5-1 Plans: Mortgaging a Defense Against Insider Trading
  • CG12: Say on Pay: Does the Buck Stop Here?
  • CG20A: Sharks in the Water: Battling an Activist Investor for Corporate Control (A)
  • CG18: Baker Hughes: Foreign Corrupt Practices Act
  • HR29B: Keller Williams Realty (B)
  • CGRP-07: Financial Manipulation: Words Don't Lie
  • CGRP-10: Sensitivity of CEO Wealth to Stock Price: A New Tool for Assessing Pay for Performance
  • CG13: Attention Shoppers: Executive Compensation at Kroger, Safeway, Costco and Whole Foods
  • CG09: Shareholder Democracy: Does Gretchen Get It Right?

Awards and Honors

  • PhD Faculty Distinguished Service Award, 2010, Stanford Graduate School of Business
  • Notable Contribution to Managerial Accounting Research, 2001

Courses Taught

  • ACCT 317: Managerial Accounting: Performance Measurement, Compensation, and Governance
  • ACCT 523: Board Governance



  • Member: Accounting, Organization and Society (1996 - present)
  • Member: American Accounting Association
  • Member: Journal of Accounting and Public Policy (2002 - present)
  • Advisory Board: Journal of Applied Corporate Finance (2004 - present)
  • Corporate Governance: Internal Governance, Organization, & Processes Abstracts Advisory Board, Corporate Governance Network, SSRN (2009 - present)
  • Member: Journal of Accounting Research (1987 - present)
  • Member: Journal of Accounting and Economics (1985 - present)

In The Media