Doctoral Seminar in Accounting Course Outline · choice or Dechow and Dichev ... **Sloan, R., 1996,...

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AMIS 8780 Summer-Fall 2018

Doctoral Seminar in Accounting

Course Outline

Instructor: Xue Wang

Class Hours: TBA

Classroom: AMIS conference room

Office: 412 Fisher Hall

Phone: 688-1330

Email: [email protected]

Office Hours: By appointment

Course Objective

This course is designed to introduce you to empirical research topics in financial accounting and how it

relates to work in economics, finance, and law.

Materials

Attached is the plan and a reading list of 14 sessions of class. Published articles can be obtained from the

library website. I will post required readings and other materials on a shared Dropbox folder. Please let

me know if you have trouble finding assigned materials.

Each session covers a set of required readings that will be discussed in class (the ** articles). In

addition, a set of background and supplementary readings is also included for each session in order to

provide a deeper understanding of the issues and methods pertinent to the session.

Please note that this reading list is merely a starting point for you to learn to appreciate the literature.

The literature on these topics is vast and we cannot ever hope to run a comprehensive PhD seminar on

these topics. The idea is to make you literate enough to pick up a research paper and consume it in an

intelligent and critical manner.

Class Format

The course will be run as a seminar. In each class, we will cover 3 or more papers. All students are

expected to read the required papers before class and be prepared to discuss the papers in class.

Students will be tasked with presenting papers to the class. Each registered student will be assigned 1-2

papers to present in class for each class session. Unregistered students will be assigned fewer papers.

See the last page of the syllabus for assigned student presentations. Note that you are free to make

bilateral trades of presentation assignments as long as I am informed no later than two days prior to the

first of the traded presentations.

mailto:[email protected]

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Class Presentation Responsibilities

Each class participant will be responsible for leading discussion of some papers during the course. These

presentations will be informal, and you should not plan to talk uninterrupted or to talk through the entire

paper. However, you should gain an especially deep understanding of the paper you are assigned so that

you can lead discussion of it and answer questions that arise about it. You should plan to cover the

following issues:

What is the research question?

How does the research relate to prior research?

What are the specific hypotheses? How were they tested?

What is the big insight from the paper (if any)?

What reservations do you have about the paper (if any)?

What applications do you see in financial reporting or other financial contexts (if any)?

Assignments

There will be two writing assignments. For the two papers marked “$$” in the reading list, you are to

write a short paper that either critiques or builds on that paper. I expect that your paper should be about

2 single-spaced pages long. It should do the following.

Identify the main research question or questions in the assigned paper.

Briefly describe how the paper fits (or why it doesn’t fit very well) with the theme and other

readings for the week.

At this point, you have a choice. You can either (1) critique the paper, recommending specific

changes that would result in a project that better gets at the main research questions; (2) propose a

new project that would get at the same basic research questions in a different way; (3) propose a new

project that would exploit what you’ve learned from the other reading and would investigate a

different (but presumably related) research question. If you choose options #2 or 3, keep in mind that

your proposal will need to be brief. I recommend using a slightly expanded version of the “Bill

Kinney 3 paragraph” format (in which the three paragraphs covers the following: what is the

research question? Why is it important? How will you investigate it?)

Referee Report

There will be one referee report due at the end of the summer sessions. You are required to write a

journal-style referee report together with a letter to editor. I will distribute the paper to be reviewed

during the week of July 16, 2018. You have 48 hours to complete this task. You are free to consult any

other references, but you are not allowed to talk to faculty and fellow Ph. D students regarding the paper

and the report. The referee report should each be approximately three pages, starting with a brief

summary of the paper and its strengths and weaknesses, then proceeding to an evaluation of its main

flaws, if any, and whether they are susceptible to correction in a revision of the paper. Be as constructive

as possible. You may (or may not) wish to make further, less essential, comments and suggestions in

numbered format at the end of the report.

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Report on Replication of a Published Empirical Accounting Research Paper

Prepare a report on a replication of either a published empirical accounting research paper of your

choice or Dechow and Dichev (TAR 2002, “The Quality of Accruals and Earnings: The Role of Accrual

Estimation Errors.”) The report should discuss problems encountered in the replication and compare the

results obtained with the original results in the paper. A critique of the paper based on the knowledge

obtained in the replication process should be included in the report. The reports will be presented to the

class.

Grades

Your grade for the class will be determined according to the following scale:

Class Discussions 15%

Presentation of Papers 20%

Assignments 20%

Referee Report 15%

Replication Report/Presentation 30%

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Course Schedule and Reading List

Session 1 (Week of June 11): Introduction and Overview

1. **Friedman, M., 1953. “The Methodology of Positive Economics,” Essays in Positive Economics.

(Chicago: University of Chicago Press): 3-43.

2. **Davis, G., 2000. “Writing the Doctoral Dissertation: A Systematic Approach,” Decision Line,

March 2000: 19-20.

3. **Roberts, H., 1970. “Dissertations with Fewer Tears.”

4. **Chow, C W., and P. D. Harrison 2002. “Identifying meaningful and significant topics for research

and publication: a sharing of experiences and insights by influential accounting authors.” Journal of

Accounting Education 20, no. 3: 183-203.

5. **Kinney, W.R., 1986. “Empirical Accounting Research Design for Ph. D students.” The Accounting

Review 61: 338-350.

6. **Frankel, R.M., M.F. Johnson, and K.K. Nelson, 2002. “The Relation between Auditors’ Fees for

Non-audit Services and Earnings Management,” The Accounting Review 77: 71-105.

7. **Kinney, W.R. and R. Libby, 2002. “Discussion of the Relation between Auditors’ Fees for Non-

audit Services and Earnings Management,” The Accounting Review 77:107-114.

Session 2 (Week of June 18): What is the Role of Accounting

1. **Ball, R., 2008. “What Is the Actual Economic Role of Financial Reporting?” Accounting Horizons

22(4): 427–432.

2. **Ball, R., 2013 “Accounting Informs Investors and Earnings Management is Rife: Two

Questionable Beliefs.” Accounting Horizons 27(4): 847-853.

3. **Ball, R. and P. Brown. 1968. “An empirical evaluation of accounting income numbers.” Journal

of Accounting Research 6 (2): 159-178.

4. **Beaver, W. 1968. “The information content of annual earnings announcements.” Journal of

Accounting Research 6 (3): 67-92.

5. **Bamber, L., T. Christensen, and K. Gaver. 2000. “Do we really know what we think we know? A

case study of seminal research and its subsequent overgeneralization.” Accounting, Organizations, and

Society 25 (2): 103-129.

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Background and Supplementary Readings

1. Holthausen, R. W., and R. L. Watts. “The relevance of the value-relevance literature for financial

accounting standard setting.” Journal of Accounting and Economics 31, Focus on Section 4, page 31-51.

2. Brown, P. 1989. Invited remarks: Ball and Brown [1968]. Journal of Accounting Research 27

(Supplement): 202-217. This paper provides Philip Brown’s perspective on his seminal paper.

3. Ball, R. and P. Brown. 2014. “Ball and Brown (1968): A Retrospective”, The Accounting Review 89:

1-26.

Session 3 (Week of June 18): Accruals and Earnings Quality

1. **Dechow, P., 1994, “Accounting Earnings and Cash Flows as Measures of Firm Performance: The

Role of Accounting Accruals,” Journal of Accounting and Economics 18: 3-42.

2. **Sloan, R., 1996, “Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about

Future Earnings?” The Accounting Review 71: 289-316.

3. ** Dechow, P. and I. Dichev, 2002, “The Quality of Accruals and Earnings: The Role of Accrual

Estimation Errors,” The Accounting Review 77: 35-59.

4. **Dichev, I., J. Graham, C. Harvey, and S. Rajgopal, 2013, “Earnings Quality: Evidence from the

Field,” Journal of Accounting and Economics 56: 1-33.


1. Dechow. P., W. Ge, and C. Schrand, 2010. “Understanding Earnings Quality: A Review of the

Proxies, their Determinants, and their Consequences,” Journal of Accounting and Economics 50: 344-

401.

2. DeFond, M., “Earnings Quality Research: Advances, Challenges, and Future Research,” Journal of

Accounting and Economics 50: 402-409.

Session 4 (Week of June 25): Earnings Management and Non-GAAP Earnings

1. **Stein, J., 1989, “Efficient Capital Markets, Inefficient Firms: A Model of Myopic Corporate

Behavior,” Quarterly Journal of Economics 104(4): 655-669.

2. **Dechow, P., R. Sloan, and A. Sweeney, 1995. “Detecting Earnings Management,” The Accounting

Review 70(2): 193-225.

3. ** Burgstahler, D. and I. Dichev, 1997. “Earnings Management to Avoid Earnings Decreases and

Losses.” Journal of Accounting and Economics 24: 99-126.

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4. ** Bradshaw and Sloan, 2002. “GAAP versus the Street: An Empirical Assessment of Two

Alternative Definitions of Earnings,” Journal of Accounting Research 40: 41-66.

5. ** Kolev, Marquartdt and McVay, 2008. “SEC Scrutiny and the Evolution of Non-GAAP Earnings.”

The Accounting Review 83(1): 157-184.


1. Healy, P. and J. Wahlen, 1999. “A Review of Earnings Management Literature and its Implications

for Standard Setting,” Accounting Horizons 13(4):365-383.

2. Dechow, P. and D. Skinner 2000. “Earnings Management: Reconciling the Views of Accounting

Academics, Practitioners, and Regulators,” Accounting Horizons 14(2):235-250.

3. Collins, D. and P. Hribar, 2002. “Errors in Estimating Accruals: Implications for Empirical

Research,” Journal of Accounting Research 40(1): 105-134.

4. **Kothari, S.P., A. Leone, and C. Wasley, 2005. “Performance-matched Discretionary Accruals

Measures,” Journal of Accounting and Economics 39: 163-197.

5. Ball, R. and L. Shivakumar, 2008. “Earnings Quality at Initial Public Offerings,” Journal of


6. Roychowdury, S., 2006. “Earnings Management through Real Activities Manipulation,” Journal of


7. Bergstresser, D. and T. Philippon, 2006. “CEO Incentives and Earnings Management,” Journal of

Financial Economics 80: 511-529.

8. Bergstresser, D., M. Desai, and J. Rauh, 2006. “Earnings Manipulations, Pension Assumptions, and

Managerial Investment Decisions,” Quarterly Journal of Economics 121: 157-195.

9. Dechow, P., W. Ge, C. Larson, and R. Sloan, 2011. “Predicting Material Accounting Restatements,”

Contemporary Accounting Research 28(1):17-82.

10. Black, Ciesielski, Christensen and Whipple, 2018. “Non-GAAP Reporting: Evidence from

Academia and Current Practice,” Journal of Business Finance and Accounting 45(3): 259-294.

11. Bhattacharya, Black, Christensen and Larson, 2003. “Assessing the Relative Informative-ness and

Permanence of Pro Forma Earnings and GAAP Operating Earnings,” Journal of Accounting and

Economics 36: 285-319.

12. Doyle, Jennings, and Soliman, 2013. “Do Managers Define non-GAAP Earnings to Meet or Beat

Analyst Forecasts,” Journal of Accounting and Economics 56: 40-56.

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Session 5 (Week of June 25): Disclosure, Information Asymmetry and Liquidity

1. ** Leuz, C. and P. Wysocki. 2016. “The Economics of Disclosure and Financial Reporting

Regulation: Evidence and Suggestions for Future Research”. Journal of Accounting Research 54: 525-

622. (Read sections 2 and 3)

2. **Lang, M. and R. Lundholm, 1993. “Cross-sectional Determinants of Analysts’ Ratings of

Corporate Disclosures,” Journal of Accounting Research 31: 246-271.

3. **Leuz, C. and R. Verrecchia, 2000. “The Economic Consequences of Increased Disclosure,” Journal

of Accounting Research 38:91-124.

4. **Bens, D., P. Berger, and S. Monahan, 2011. “Discretionary Disclosure in Financial Reporting: An

Examination Comparing Internal Firm Data to Externally Reported Segment Data,” The Accounting

Review 86 (2): 417-449.

5. $$Dyreng, Hoopes, Langetieg, and Wilde, 2018. “Strategic Subsidiary Disclosure,” Working Paper.


1. Akerloff, G. 1970: “The Market for Lemons: Quality Uncertainty and the Market Mechanism.”

Quarterly Journal of Economics 84(3): 488-500.

2. Grossman, S. J. 1981. “The Informational Role of Warranties and Private Disclosure about Product

Quality.” Journal of Law and Economics 24 (3): 461-483.

3. Healy, P. and K. Palepu, 2001. “Information asymmetry, corporate disclosure, and the capital

markets: A review of the empirical disclosure literature.” Journal of Accounting and Economics 32:

405-441.

4. Graham J., C. Harvey, and S. Rajgopal, 2005. “The Economic Implications of Corporate Financial

Reporting,” Journal of Accounting and Economics 40: 3-73.

5. Beyer, A., D. Cohen, T. Lys, and B. Walther, 2010. “The Financial Reporting Environment: Review

of the Recent Literature.” Journal of Accounting and Economics 50 (2-3): 296-343.

6. Berger, P., 2011. “Challenges and Opportunities in Disclosure Research—A Discussion of ‘The

Financial Reporting Environment: Review of the Recent Literature.” Journal of Accounting and


7. Lang M. and M. Maffett, 2011. “Transparency and Liquidity Uncertainty in Crisis Periods.” Journal

of Accounting and Economics 52: 101-125.

8. Files, R., E. P. Swanson, and S. Tse, 2009. “Stealth disclosure of accounting restatements,” The

Accounting Review 84 (5): 1495–1520.

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Session 6 (Week of July 2): Disclosure and Securities Regulation

1. ** Leuz, C. and P. Wysocki. 2016. “The Economics of Disclosure and Financial Reporting

Regulation: Evidence and Suggestions for Future Research”. Journal of Accounting Research 54: 525-

622. (Read section 4)

2. **Bushee, B. and C. Leuz, 2006. “Economic Consequences of SEC Disclosure Regulation: Evidence

from the OTCBB,” Journal of Accounting and Economics 39: 233-264.

3. **Iliv, P., 2009. “The Effect of SOX Section 404: Costs, Earnings Quality, and Stock Prices,” Journal

of Finance 65: 1163-1196.

4. **Bhattacharya, Cho and Kim, 2018. “Leveling the Playing Field between Large and Small

Institutions: Evidence from the SEC’s XBRL Mandate.” The Accounting Review, Forthcoming.


1. Ross, S., 1979. “The Economics of Information and the Disclosure Regulation Debate,” in Issues in

Regulation, Franklin Edwards (ed.), New York, McGraw Hill.

2. Shleifer, A., 2005. “Understanding Regulation,” European Financial Management 11: 439-451.

3. Files, R., 2012. “SEC Enforcement: Does Forthright Disclosure and Cooperation Really Matter,”

Journal of Accounting and Economics 53: 353-374.

Session 7 (Week of July 9): More Regulation Studies

1. ** Coffee. J., 1984. “Market Failure and the Economic Case for a Mandatory Disclosure System”,

Virginia Law Review 70: 717-753.

2. ** Hochberg, Y. V., P. Sapienza, and A. Vissing-Jørgensen, 2009. “A Lobbying Approach to

Evaluating the Sarbanes-Oxley Act of 2002.” Journal of Accounting Research 47(2): 437-445.

3. ** Wang, I. 2007. “Private Earnings Guidance and Its Implications for Disclosure Regulation.” The

Accounting Review 82 (5): 1299-1332.

4. ** Cohen, D. A., A. Dey, and T. Z. Lys, 2008. “Real and Accrual‐Based Earnings Management in the

Pre‐ and Post‐Sarbanes‐Oxley Periods.” The Accounting Review 83 (3): 757–787.


1. Stulz, R. 2009. “Securities Laws, Disclosure, and National Capital Markets in the Age of Financial

Globalization”, Journal of Accounting Research 47: 349-389.

2. Kanodia and Sapra. 2016. “A Real Effects Perspective to Accounting Measurement and

Disclosure: Implications and Insights for Future Research”. Journal of Accounting Research 54: 623-

676.

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Session 8 (Week of July 9): Contracting and Corporate Governance

1. **Jensen, M. and W. Meckling, 1976. “Theory of the Firm: Managerial Behavior, Agency Costs, and

Ownership Structure,” Journal of Financial Economics 3-4: 305-360. (Read pages 305-319, 323-346)

2. **Bebchuk, L. and J. Fried, 2003. “Executive Compensation as an Agency Problem,” Journal of

Economic Perspectives 17 (3): 71-92.

3. **Core, J., R. Halthausen, and D. Larcker, 1999. “Corporate Governance, CEO Compensation, and

Firm Performance,” Journal of Financial Economics 51: 371-406.

4. **Frydman, C. and R. Saks, 2010. “Executive Compensation: A New View from a Long-Term

Perspectives, 1936-2005,” Review of Financial Studies 23: 2099-2138.

5. $$Guest, Kothari and Prozen, 2018. “High Non-GAAP Earnings Predict Abnormally High CEO Pay,”

Working Paper.


1. Coase, R., 1937. “The Nature of the Firm,” Economica 4: 386-405.

2. Holmstrom, B., 1979. “Moral Hazard and Observability,” Bell Journal of Economics 10: 74-91.

3. Fama, E., 1980. “Agency Problems and the Theory of the Firm,” Journal of Political Economy 88:

288-307.

4. Armstrong, C., W. Guay, and J. Weber, 2010. “The Role of Information and Financial Reporting in

Corporate Governance and Debt Contracting,” Journal of Accounting and Economics 50: 179-234.

5. Brickley, J. and J. Zimmerman, 2010. “Corporate Governance Myths: Comments on Armstrong,

Guay, and Weber,” Journal of Accounting and Economics 50: 235-245.

6. Kaplan, S. and J. Rauh, 2010. “Wall Street and Main Street: What Contributes to the Rise in the

Highest Incomes?” Review of Financial Studies 23: 1004-1050.

Session 9 (Week of July 16): Getting to Know the Data – SAS and WRDS

Hailey Ballew will lead a session on SAS and WRDS.

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Session 10 (Week of July 23): Global Capital Market Research: Cross-Listing, the Bonding

Hypothesis, and IFRS

1. **Leuz, C. and P. Wysocki, 2008. “Economic Consequences of Financial Reporting and Disclosure,”

Working Paper (on SSRN). (Read sections 5 and 6)

2. **Doidge, C., A. Karolyi, and R. Stulz, 2004. “Why are Foreign Firms Listed in the US Worth

More?” Journal of Financial Economics 71: 205-238.

3. **Siegel, J., 2005. “Can Foreign Firms Bond Themselves Effectively by Renting U.S. Securities

Laws?” Journal of Financial Economics 75: 319-359.

4. **Daske, H., L. Hail, C. Luez, and R. Verdi, 2008. “Mandatory IFRS Reporting Around the World:

Early Evidence on the Economic Consequences,” Journal of Accounting Research 46: 1085-1142.


1. Coffee, J., 2002. “Racing towards the Top? The Impact of Cross-Listings and Stock Market

Competition on International Corporate Governance,” Columbia Law Review 102(7): 1757-1831.

2. Karolyi, A., 2006. “The World of Cross-Listings and Cross-Listings of the World: Challenging

Conventional Wisdom,” Review of Finance 10: 73-115.

3. Gerakos, J., M. Lang, and M. Maffett, 2013. “Post-Listing Performance and Private Sector

Regulation: The Experience of the AIM,” Journal of Accounting and Economics 56: 189-215.

4. Barth, M., W. Landsman, and M. Lang, 2008. “International Accounting Standards and Accounting

Quality,” Journal of Accounting Research 46: 467-498.

5. Daske, H., L. Hail, C. Luez, and R. Verdi, 2013. “Adopting a Label: Heterogeneity in the Economic

Consequences around IAS/IFRS Adoptions,” Journal of Accounting Research 51: 495-547.

6. Bruggemann, U., H. Joerg-Markus, and T. Sellhorn, 2013. “Intended and Unintended Consequences

of Mandatory IFRS Adoption: A Review of Extant Evidence and Suggestions for Future Research,”

European Accounting Review 22: 1-37.

7. De George, Li and Shivakumar, 2016. “A Review of the IFRS Adoption Literature.” Review of

Accounting Studies 21(3): 898-1004.

Session 11 (Week of July 23): Archival Auditing Research

1. **DeAngelo, L., 1981. “Auditor independence, ‘low-balling’ and disclosure regulation,” Journal of

Accounting and Economics 3:113-127.

2. **DeFond, M. and C. Lennox, 2011. “The Effect of SOX on Small Auditor Exits and Audit Quality,”

Journal of Accounting and Economics 52: 21-40.

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3. **Lennox, C. and J. Pittman, 2011. “Voluntary Audits versus Mandatory Audits,” The Accounting

Review 86:1655-1678.

4. **Schroeder, 2016. “The Impact of Audit Completeness and Quality on Earnings Announcement

GAAP Disclosures,” The Accounting Review 91:677-705.

5. **Nagy. 2004. “Playing Peekaboo with Constitutional Law: The PCAOB and its Public/Private

Status”. Notre Dame Law Review 80: 975-1072.


1. DeFond, M. and J. Zhang, 2014. “A Review of Archival Auditing Research,” Journal of Accounting

and Economics 58: 275-326.

2. Donovan, Frankel, Lee, Martin, and Seo, 2014. “Issues Raised by Studying DeFond and Zhang: What

should Audit Researchers Do?” Journal of Accounting and Economics 58: 327-338.

3. Lennox, C., 2005. “Audit Quality and Executive Officers' Affiliations with CPA Firms,” Journal of

Accounting and Economics 39:201-231.

4. Lennox, C. and B. Li, 2012. “The Consequences of Protecting Audit Partners’ Personal Assets from

the Threat of Liability,” Journal of Accounting and Economics 54:154-173.

5. Lennox, C. and J. Pittman, 2010. “Auditing the Auditors: Evidence on the Recent Reforms to the

External Monitoring of Audit Firms,” Journal of Accounting and Economics 49: 84-103.

Session 12 (Autumn 2018 TBA): Intermediaries – Analysts and Media

1. **Bradshaw, M.T., 2013. “Analysts’ Forecasts: What do We Know after Decades of Work?”

Working Paper.

2. **Brown, L.D., A.C. Call, M.B. Clement, and N.Y. Sharp. 2015. “Inside the “Black Box” of Sell-

Side Financial Analysts,” Journal of Accounting Research 50 (1): 1-47.

3. ** Brown, L.D., A.C. Call, M.B. Clement, and N.Y. Sharp. 2016. “The Activities of Buy-Side

Analysts and the Determinants of Their Stock Recommendations,” Journal of Accounting and

Economics 62 (1): 139-156.

4. **Fang, L. and J. Peress, 2009. “Media Coverage and the Cross-section of Stock Returns.” Journal of

Finance 64(5): 2023-2052.

5. **Bushee, B.J., J.E. Core, W. Guay, and S.J.W. Hamm, 2010. “The role of the business press as an

information intermediary.” Journal of Accounting Research, Vol. 48, No. 1, March, 1-20.

6. **Guest, N., 2018. “Do Journalists Help Investors Analyze Firms’ Earnings News?” Working Paper.

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1. Schipper, K., 1991. “Commentary on analysts’ forecasts,” Accounting Horizons 5 (4): 105-121.

2. Ramnath, S., S. Rock, and P. Shane, 2008. “The Financial Analyst Forecasting Literature: A

Taxonomy with Suggestions for Further Research. International Journal of Forecasting, 24 (1): 34-75.

3. O’Brien, P., 1988. “Analysts' Forecasts as Earnings Expectations,” Journal of Accounting and


4. Gu, Z. and J. Wu, 2003. “Earnings Skewness and Analyst Forecast Bias,” Journal of Accounting and

Economics 35:5-29.

5. Asquith, P., M. Mikhail, and A. Au, 2005. “Information Content of Equity Analyst Reports.” Journal

of Financial Economics, 75(2): 245–282.

6. Womack, K., 1996. “Do Brokerage Analysts’ Recommendations Have Investment Value?” The

Journal of Finance 51 (1): 137–67.

7. **Cutler, D.M., Poterba J.M. and L.H. Summers, 1989. “What moves stock prices?” Journal of

Portfolio Management, Vol. 15, 4-11

8. Engelberg, J.E., and A.P. Parsons, 2011. “The causal impact of media in financial markets.” Journal

of Finance, Vol. 66, 67−97.

9. Tetlock, P.C., 2007. “Giving content to investor sentiment: the role of media in the stock market.” The

Journal of Finance, Vol. 62, No. 3, 1139-1168.

10. Tetlock, P.C., 2010. “Does public financial news resolve asymmetric information?” Review of

Financial Studies 23 (9), 3520 –3557.

11. J. Core, W. Guay and D. Larcker, “The power of the pen and executive compensation,” Journal of

Financial Economics 88, 1-25 (2008).

Session 13 (Autumn 2018 TBA): Credit Rating Agencies and Institutional Investors

1. Partnoy. 1999. “The Siskel and Ebert of Financial Markets? Two Thumbs Down for the Credit Rating

Agencies”, Washington University Law Review Quarterly 77(3): 619-714.

2. Kraft. 2015. “Do Rating Agencies Cater? – Evidence from Rating-Based Contracts”, Journal of

Accounting and Economics, 59: 264-283.

3. Jiang, J., M. Stanford and Y. Xie, 2012. “Does It Matter Who Pays for Bond Ratings? Historical

Evidence,” Journal of Financial Economics, 105(3): 607-621.

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4. Basu, Naughton, and Wang, 2018. “Exogenous Credit Rating Changes and the Provision of Voluntary

Disclosure,” Working Paper.

5. Bushee, B., 1998. “The Influence of Institutional Investors on Myopic R&D Investment Behavior”.

The Accounting Review 73: 305-333.

6. Parrino, R., Sias, R.W., and L. T. Starks. 2003. “Voting With Their Feet: Institutional Ownership

Changes Around Forced CEO Turnover,” Journal of Financial Economics 68, 3-46.


1. Morgan, 2002. “Rating Banks: Risk and Uncertainty in an Opaque Industry,” The American

Economic Review 92: 874-888.

2. Bonsall, 2014. “The Impact of Issuer-Pay on Corporate Bond Rating Properties: Evidence from

Moody’s and S&P’s Initial Adoptions,” Journal of Accounting and Economics 57: 89-109.

3. Akins, 2018. “Financial Reporting Quality and Uncertainty about Credit Risk Among Rating

Agencies,” The Accounting Review, Forthcoming.

4. Bushee and Noe, 2000. “Corporate Disclosure Practices, Institutional Investors, and Stock Return

Volatility,” Journal of Accounting Research: 171-202.

5. Hartzell and Starks, 2003. “Institutional Investors and Executive Compensation,” Journal of Finance

58: 2351-2374.

6. Appel, Gormerly and Keim, 2016. “Passive Investors, Not Passive Owners,” Journal of Financial

Economics 121: 111-141.

7. Brav, Jiang, Partnoy, and Thomas, 2008. “Hedge Fund Activism, Corporate Governance, and Firm

Performance,” Journal of Finance 63: 1729-1775.

Session 14 (Autumn 2018 TBA): Student Presentations of Replication Report

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Schedule for Student Presentations

Date Presenter Paper

* You are free to make bilateral trades of presentation assignments as long as I am informed no later

than the Friday prior to the first of the traded presentations.

Doctoral Seminar in Accounting Course Outline · choice or Dechow and Dichev ... **Sloan, R., 1996,...

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