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

Ed deHaan, Joshua Madsen, Joseph D. Piotroski
Journal of Accounting Research. June
2017, Vol. 53, Issue 3, Pages 509-550

We investigate whether unpleasant environmental conditions affect stock market participants’ responses to information events. We draw from psychology research to develop a new prediction that weather-induced negative moods reduce market...

Elizabeth Blankespoor, Bradley E. Hendricks, Gregory S. Miller
Journal of Accounting Research. May
2017, Vol. 55, Issue 2, Pages 275-327

This paper examines the relation between cognitive perceptions of management and firm valuation. We develop a composite measure of investor perception using 30-second content-filtered video clips of initial public offering...

Charles M. C. Lee, Eric C. So
Journal of Financial Economics. May
2017, Vol. 124, Issue 2, Pages 331-348

We show that analyst coverage proxies contain information about expected returns. We decompose analyst coverage into abnormal and expected components using a simple characteristic-based model and show that firms with...

Alex Baum, David Robert Hale, Mason Morfit, David F. Larcker, Brian Tayan
Stanford Closer Look Series. April
2017

Understanding CEO compensation plans is a continuing challenge for directors and investors. The disclosure of these plans is dictated by SEC rules that rely heavily on the “fair value” of...

David F. Larcker, Brian Tayan
CGRI Quick Guide Series. April
2017

This Data Spotlight provides data and statistics on the level and structure of CEO compensation in the United States. This data supplements in the issues introduced in the Quick Guides...