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

Mary E. Barth, Wayne R. Landsman, Daniel J. Taylor
The Accounting Review (In-Press). July
2017

This study examines the effect of the Jumpstart Our Business Startups Act (JOBS Act) on information uncertainty in IPO firms. The JOBS Act creates a new category of issuer, the...

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...

Ian D. Gow, David F. Larcker, Brian Tayan
Stanford Closer Look Series. May
2017

CEO succession at many companies occurs in a black box. Shareholders are not privy to boardroom discussions prior to the announcement of a CEO departure, and press releases announcing the...

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...