Faculty Spotlight
Professor Ilan Guttman and his co-authors, Ilan Kremer of Hebrew University and the University of Warwick and Andrzej Skrzypacz of Stanford University, examine a dynamic model of voluntary disclosure of multiple pieces of private information. In their model, a manager of a firm, who may learn multiple signals over time, interacts with a competitive capital market. The manager cares about the stock price in every period and decides strategically whether, when and what part of his private information to disclose to the capital market. They show (perhaps surprisingly) that in equilibrium, the market price depends not only on what information has been disclosed so far, but also on when it was disclosed. Moreover, later disclosures are interpreted more favorably even though the time at which the manager obtains the signals is independent of the value of the firm. This paper has been accepted for publication at the American Economics Review.
Professor Yiwei Dou and his co-authors, Ole-Kristian Hope of the University of Toronto's Rotman School of Management, Wayne Thomas of the University of Oklahoma's Michael F. Price College of Business and Youli Zou at George Washington University, examine blockholder's (those with ownership of five percent or more of a company) influence on a company's financial reporting. Using a large, hand-collected sample of all blockholders of S&P 1500 firms for the years 2002 to 2009, the researchers tested whether firms' financial reporting choices relate to individual shareholders. They document significant individual blockholder effects on financial reporting quality (accrual-based earnings management, real earnings management and restatements). They determine that this association is driven primarily by the large shareholders influencing rather than selecting firms' accounting practices. They also find that the effect of individual blockholders on financial reporting quality manifests itself in significant consequences related to stock price reaction to earnings news. Finally, they attempt to understand individual blockholders' effects on financial reporting quality using several blockholder characteristics, but they find only limited explanatory power. These results highlight the highly individualized effects of blockholders and the need for research to further understand the mechanisms through which shareholders impact financial reporting.
Professor Stephen Ryan was recently nominated to the Federal Reserve Bank of New York's Financial Advisory Roundtable
Financial Advisory Roundtable is a group of distinguished economists, risk management professionals and other experts in the financial markets who meet twice a year with the president of the New York Fed to discuss financial stability issues and present their views on financial policy. Read More
Prof Frederick Choi received Teaching Excellence Award
Three faculty members were recently presented with NYU Stern distinguished teaching awards: Jennifer Carpenter, Associate Professor of Finance, received the Teaching Excellence Award; Frederick Choi, Dean Emeritus and Distinguished Service Professor of Business, received the Lifetime Educational Achievement Award; and Charles Murphy, Professor of Management Practice, received the Pedagogical Innovation Award.
Frederick Choi, Dean Emeritus and Distinguished Service Professor of Business, has been awarded NYU Stern's Ely Kushel Teaching Excellence Fellowship.
Baruch Lev, Philip Bardes Professor of Accounting and Finance, has been awarded an Axiom Business Book Awards Gold Medal
He received the Gold Medal in the Personal Finance and Investing category for his recent book, Winning Investors Over: Surprising Truths about Honesty, Earnings Guidance and Other Ways to Boost Your Stock Price.
Prof Frederick Choi received the University of Hawaii Distinguished Alumni Award- 2012
Frederick D.S. Choi, PhD, is Dean Emeritus and Distinguished Service Professor of Business at the New York University Stern School of Business. A prolific author, he is a recognized expert in financial reporting and analysis. During his 30-plus years at NYU, Choi has served as Stern School’s vice dean, dean of its Undergraduate College, chair of its accounting and international business departments, and chaired professor. He was also director of NYU’s Ross Institute of Accounting Research and Japan-America Business and Cultural Studies Program. Read More
An op-ed by Professor Baruch Lev on how to win investors over
Excerpt from Harvard Business Review — "... research by me and other academics indicates that guidance increases analyst following and cuts down on unwelcome surprises, which in turn reduces stock price volatility and lessens the threat and consequences of shareholder lawsuits. " Read More
Prof. Eli Bartov on the tax write-offs received for donations to the Kashmiri American Council
Excerpt from The Atlantic -- "At minimum, the write-offs violated U.S. tax laws, experts said. 'That's not allowed,' said Eli Bartov ... 'You can only get the deduction if you make the contribution.'" Additional coverage appeared in ProPublica.
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Prof. Kashi Balachandran Honored at Accounting Symposium
Professor Emeritus of Accounting Kashi Balachandran was honored at dinner held in conjunction with the Asia-Pacific Journal of Accounting and Economics: Accounting Symposium held at the University of Hawaii at Manoa in Honolulu, HI, on March 25-26. The Symposium, sponsored by the University of Texas – Dallas, National Taiwan University, Bocconi University and Tunghai University honored his services to Accounting, his students and education. It featured Key Note speakers Shyam Sunder, Yale University; Rashad Abdel-Khalik, University of Illinois and Joshua Ronen, New York University.
Prof. April Klein's research on reverse stock splits was referenced
In The Wall Street Journal: "Citigroup Instantly Becomes a $40 Stock", on May 10, 2011 Professor April Klein's research on reverse stock splits was referenced, with additional pick-up on Fox Business, The New York Times, two Reuters pieces, a Wall Street Journal blog, The Baltimore Sun, Investorplace.com and whnt.com.
Prof. Eli Bartov's research featured in a Risky Business Blog
On May 2, 2011 in the CFO World: "Filing Late? Make It a 10-K, Not Your 10-Q" , Professor Eli Bartov's research, which examined the market's reaction when companies file late financial reports, was featured on the Risky Business blog, with additional pick-up on IDG News Service.
Prof. Eli Bartov's paper published Journal of Accounting and Economics
How Today's Current Losses & Profits Affect Tomorrow's Performance.*Research Professor of Accounting Eli Bartov*, and two of his former PhD students Karthik Balakrishnan (MPhil '08) of the University of Pennsylvania's Wharton School and Lucile Faurel (PhD '08) of the University of California, Irvine's Merage School of Business, examine whether investors fully price the implications of current losses or profits for future losses or profits in their paper recently published in the Journal of Accounting and Economics/, entitled "Post Loss/Profit Announcement Drift".
Accounting Department Ranked
Stern's Accounting Department was recently ranked number two in the nation by the Chronicle of Higher Education.
Prof Zarowin's and Prof Bartov's research referenced in Economics Week
"New Accounting Research Study Findings Have Been reported by Scientists at New York University". Professor Paul Zarowin's researsh, showing that Search Engine Optimization firms engage in real activity manipulation, was referenced at Economics Week "Researchers from New York University Report Recent Findings in Accounting Research". Professor Eli Bartov's research on the fact that stock prices fail to respond to loss/profit quaterly announcements was referenced at Economics Week
Professors of Stern's Accounting Department gave there perspectives on convergence of Accounting Standards
"GAAP versus International Financial Reporting Standards". Professors Frederick Choi, Eli Bartov, Seymour Jones, Baruch Lev, Stephen Ryan and Paul Zarowin offered their perspectives in the debate on the convergence of accounting standards. Additional coverage appeared on EarthTimes.org and Reuters "NYU Chair: The World Won't End if the United States Converts to IFRS". Professor Federick Choi shared his thoughts on how NYU Stern prepares students for a US convergence of accounting principles to IFRS at GoingConcern.com