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

Amit Batish, Andrew Gordon, David F. Larcker, Brian Tayan, Edward M. Watts, Courtney Yu
Stanford Closer Look Series. Corporate Governance Research Initiative, September
2020

Scrutiny of CEO pay increases during times of economic stress, when it is not clear how much pay CEOs should receive when corporate profitability suffers due to an unforeseen decline...

Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor
The Journal of Finance. August
2020, Vol. 75, Issue 4, Pages 1833–1876

We analyze the trading of corporate insiders at leading financial institutions during the 2007 to 2009 financial crisis. We find strong evidence of a relation between political connections and informed...

Mary E. Barth, Wayne R. Landsman, Vivek Raval, Sean Wang
The Accounting Review. July
2020, Vol. 95, Issue 4, Pages 23–50

This study finds that greater asymmetric timeliness of earnings in reflecting good and bad news is associated with slower resolution of investor disagreement and uncertainty at earnings announcements. These findings...

David F. Larcker, Brian Tayan
Stanford Closer Look Series. Corporate Governance Research Initiative, July
2020

Our concept of risk continues to broaden and now includes instances in which representatives of a company make statements, actions, or decisions that damage the firm by inviting public scrutiny,...

David F. Larcker, Bradford Lynch, Brian Tayan, Daniel J. Taylor
Stanford Closer Look Series. Corporate Governance Research Initiative, June
2020

Investors rely on corporate disclosure to make informed decisions about the value of companies they invest in. The COVID-19 pandemic provides a unique opportunity to examine disclosure practices of companies...