Recent News from the Accounting Department
Professor Paul Zarowin on Capital Markets and Short-Termism: Evidence from the Investment Behavior of Public and Private Firms, October 29, 2021
We show that, contrary to popular belief, capital markets do not drive short-termism. By comparing public and private European firms in countries with different institutional infrastructures, we show that being listed in the stock market plays a positive role in a firm’s investment policies, which is inconsistent with the notion of short-termism. Read more
Professor Yiwei Dou on Public Audit Oversight and the Originate-to-Distribute Model, August 2, 2021
The originate-to-distribute (OTD) model, in which the originators of mortgages sell or securitize the mortgages to third parties, likely contributed to the 2008 financial crisis. Auditors were blamed for permitting clients to understate the risks of the model in their financial reports, fostering undisciplined lending. Read more
Professor Ilan Guttman and co-authors in Journal of Financial Economics, November 18, 2019
Professor Ilan Guttman and co-authors study how the possibility that a firm’s private information may be revealed by a third party affects the firm’s voluntary disclosure policy and overall information available to the market. They find that while greater third party coverage may crowd out firm’s voluntary disclosure, it always improves the overall quality of public information and liquidity.Read more.
Professor Baruch Lev on Facebook's earnings call, July 23, 2012
Excerpt from Bloomberg — "Facebook officials will need to convey confidence without making promises they can’t keep, said Baruch Lev, a professor at New York University Stern School of Business and author of 'Winning Investors Over: Surprising Truths About Honesty, Earnings Guidance, and Other Ways to Boost Your Stock Price.' Read more
Professor April Klein's paper on hedge fund activism is highlighted, April 2, 2012
Excerpt from Fortune — "In a paper published in 2009, NYU Stern School of Business professor April Klein looked at 151 activist hedge fund targets between 2003 and 2005. She found that out of those 151 targets, activist shareholders received a seat on the board about 44% of the time." Read More
NYU Stern's Ross Roundtable on trends in financial enforcement and securities litigation
Excerpt from a Reuters blog — "Canellos was speaking as part of a panel last week on trends in financial enforcement and securities litigation after Dodd-Frank. The panel was organized by NYU Stern Business School and NERA Economic Consulting." Read more
Philip Bardes Professor of Accounting and Finance
Baruch Lev, offers managers a guide for regaining and sustaining investor confidence in his new book, Winning Investors Over: Surprising Truths about Honesty, Earnings Guidance and Other Ways to Boost Your Stock Price. Drawing from Professor Lev’s research and that of many leading finance, economic and accounting scholars, the book provides strategies for avoiding capital market setbacks and weathering storms when they do occur. It also debunks many managerial misconceptions and myths about capital markets. Over the next few months, Professor Lev is presenting his new book in cities around the world including Bologna, Italy; Tel Aviv, Israel; Cleveland and Boston.
Associate Professor of Accounting
NYU Stern Accounting Professor April Klein was recently honored with the “2005 Notable Contributions to Accounting Literature Award” by the American Accounting Association. The award was granted as a result of Professor Klein’s research papers, “Audit Committee, Board of Director Characteristics and Earnings Management” (Journal of Accounting and Economics, 2002) and “Economic Determinants of Audit Committee Independence” (The Accounting Review, 2002). The American Accounting Association will present this award to her at their annual meeting in San Francisco in August 2005. The award recognizes research of exceptional merit. For this year’s award, all nominated items must have been published between 2000 and 2004. Other criteria for selection include uniqueness and potential magnitude of contribution to accounting education, practice and/or future accounting research; breadth of potential interest; originality and innovative content; clarity and organization of exposition; and soundness and appropriateness of methodology. The screening committee reviewed and selected a subset of all nominations, voted on the nominations and selected April Klein as this year’s recipient.
Professor Klein has been with NYU Stern since 1987 and she teaches courses in financial accounting, financial statement analysis and mergers and acquisitions. Her primary research areas include audit committees, corporate governance, earnings management, financial accounting and securities law. Professor Klein’s work has been published in numerous journals including The Journal of Accounting & Economics, The Accounting Review, and The Journal of Finance.
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