CARE

John Donovan’s paper, "Financial Reporting and Entrepreneurial Finance: Evidence from Equity Crowdfunding," has been accepted for publication at Management Science. Here is the abstract:

I study the role of accounting and financial reporting in entrepreneurial finance by examining whether financial statement disclosure increases capital raised through equity crowdfunding. On average, I find a positive association between financial reporting and capital raised, suggesting that accounting reduces information asymmetry with potential investors. Additionally, the importance of financial reporting in equity crowdfunding varies predictably in the cross-section. Specifically, financial reporting is associated with greater capital raised when the firm has longer historical operations, during periods of higher macroeconomic uncertainty, and when complemented by detailed shareholder agreements. Finally, using a mediation analysis, I find evidence that financial reporting is indirectly…

Read More

Andy Imdieke’s paper, “The Revival of Large Consulting Practices at the Big 4 and Audit Quality,” co-authored with Dain Donelson (University of Texas at Austin), Matthew Ege (Texas A&M University), and Eldar Maksymov (Arizona State University), has been accepted for publication at Accounting, Organizations and Society…

Read More

John Donovan, whose paper, “Measuring credit risk using qualitative disclosure,” co-authored with Jared Jennings (Washington University), Kevin Koharki (Purdue), and Josh Lee (BYU), has been accepted for publication at Review of Accounting Studies. Here is the abstract:

We use machine learning methods…

Read More

Stephannie Larocque  has been elected as President-Elect of the Financial Accounting and Reporting Section (FARS) of the American Accounting Association. FARS serves over 1,600 members of the accounting academic community. Stephannie will serve as the FARS President-Elect in 2020-21, President in 2021-22, and Past President in 2022-23. As FARS President, she will chair the FARS Executive Committee and will appoint FARS members to committees and task forces. Stay tuned … she may be asking you to volunteer! In addition, Stephannie will be responsible for leading the organization of the 2023 FARS Midyear Meeting.…

Read More

Please join me in congratulating Stephannie Larocque, who has been recently appointed to the Editorial Board of Contemporary Accounting Research. Stephannie's term spans from April 2020 to December 2022. 

 …

Read More

Read More

Congratulations to Ram Ramanan, who recently had two papers published:

• An analysis of trading volume response to regulatory events affecting major coal mining firms, (with Matthew Hayes and Kirk Phillipich) Oil, Gas & Energy Quarterly, Vol. 67,  No. 3, 2019, pp. 435-444.           
• An inter-temporal analysis of the volatility of oil spot prices and CEO compensation in the oil and gas industry, (with Kirk Phillipich and Junghyun Lee) Oil, Gas & Energy Quarterly, 
…

Read More

Ken Milani’s article, “Seeking shelter: Pondering the potential and problems,” co-authored with Richard Rodriguez, was recently published in the October 2019 issue of The Tax Magazine. Richard is a Double Domer, with both undergraduate and MSA degrees from ND.

Abstract: As federal income tax rates drop and the individual alternative minimum tax (AMT) decreases or disappears, the appeal of and interest in tax shelters appears to be diminishing. When one adds the "target marketing" of shelters to the mix, it's easy to understand why many practitioners find themselves with little or no experience or exposure to the potential and the problems of tax shelters. Nonetheless, increased IRS scrutiny of investments that allow for tax avoidance, and at times tax evasion continues. This heightened level of attention generates investigations that focus on whether or not an offering is an "abusive tax shelter." Questions are posed such as: Does the investment have beneficial societal outcomes? Are the tax benefits exaggerated? All of these elements combine in a manner that makes it important for tax practitioners to understand the benefits and the blemishes of tax shelters.…

Read More

Jeff Burks' research was cited in The Wall Street Journal article "Shh! Companies Are Fixing Accounting Errors Quietly."…

Read More

Brad Badertscher's paper, Private versus public corporate ownership: Implications for future changes in profitability, has been accepted by the Journal of Management Accounting Research.

Abstract: Managers have long debated the implications of public and private corporate ownership; however, little empirical research has provided insight into the issue. Among their findings, Brad and his co-authors discovered robust evidence that public firms are associated with significantly lower future changes in operating profitability compared to private firms matched on current profitability, size, growth and industry. The results provide insight for managers and investors into the differential future changes in profitability of public versus private firms and into the factors that drive the differential profitability.…

Read More

Accountancy's Brad Badertscher was appointed as the Deloitte and Touche Professor of Accountancy as of January 1, 2020. Congratulations, Brad!…

Read More

New research by accountancy's Zach Kowaleski and his co-researchers offers the first large sample study on how rules and ethics training affects behavior and employment decisions in the financial sector was featured by Markets Insider, The Street…

Read More

Read More

Tonia Murphy's paper "The Right of Publicity: Worth a Closer Look in the Classroom," was published in the Journal of Legal Studies Education (Vol. 36, Issue 2, Summer 2019).…

Read More

Asis Martinez-Jerez received the 2019 Notable Contribution to Management Accounting Literature Award for "The performance effect of feedback frequency and detail: Evidence from a field experiment in customer satisfaction," Journal of Accounting Research, 55/5 (December 2017): 1051-1088, co-authored with Pablo Casas-Arce and Sofia Lourenco. Asis and his co-authors were presented with this prestigious award yesterday at the American Accounting Association meeting in San Francisco.…

Read More

Brad Badertscher's paper, "Private versus public corporate ownership: Implications for future changes in profitability," co-authored with Kristian D. Allee and Teri L. Yohn, has been accepted for publication at the Journal of Management Accounting Research.

Andy Imdieke's paper, "On the relation between insider trading and going concern opinions," co-authored with Nicholas Hallman, Kyonghee Kim, and Raynolde Perreira, has been accepted for publication at Auditing: A Journal of Practice and Theory…

Read More

Brad Badertscher received the Outstanding Service Award from the Financial Accounting and Reporting Section (FARS) of the American Accounting Association for his service on the FARS Steering Board Committee.…

Read More

Hal White is the Vincent and Rose Lizzadro Professor of Accountancy. Before joining Mendoza in 2019, he spent five years at Penn State's Smeal College of Business, and six years at the University of Michigan’s Ross School of Business, where he taught in both undergraduate and graduate (Masters and PhD) programs. Before entering academia, Professor White worked in public accounting as an auditor in the late 1990s, first with Deloitte & Touche LLP, then with Pearce, Beville, Leesburg and Moore LLP. Professor White's research focuses broadly on corporate disclosure. In particular, his research includes assessing the quality of financial reports, disclosure externalities, disclosure regulation, and managerial signaling. He also examines the impact of recent innovations in information technology on firm communications.…

Read More

Please join us in congratulating Jeff Burks on the acceptance of Competition and voluntary disclosure: Evidence from deregulation in the banking industry (with coauthors Cuny, Gerakos, and Granja) by the Review of Accounting Studies. Congratulations Jeff!…

Read More

Brad Badertscher's paper (co-authored with Sharon Katz, Dan Givloy, and Hanna Lee) "Private Ownership and the Cost of Public Debt: Evidence from the Bond Market" has been accepted for publication in Management Science.

A number of studies have examined the effect of public and private ownership on the cost of debt and conclude that the cost of debt of privately owned firms is higher, driven mainly by the poorer information environment in which these firms operate. We extend this strand of research in two ways. First, we identify and empirically establish the mechanisms that bring about a higher cost of debt to privately-owned firms, namely the limited access that these firms have to the equity capital market, their high rate of management and private-equity ownership, and their less conservative reporting. Second, we improve the reliability of the estimates of the effect of ownership type on the cost of debt by controlling for the different information environments in which privately- and publicly-owned firms operate. This is accomplished through the use of a sample consisting of publicly-owned and privately-owned firms that have public debt and are therefore subject to identical reporting and disclosure requirements. Certain data and design features allow us to better control for other factors that might lead to the observed difference in the cost-of-debt between the two groups of firms. The results contribute to our understanding of the role of ownership type on the cost of capital.…

Read More

Ram Ramanan's paper with Kirk Phillipich and Bruce Bublitz, "One Conspirator or Two in the Death of the Coal-Miner's Daughter", has been accepted for publication by Oil, Gas, & Energy Quarterly.

This research attempts to address the question of who was culpable in the market decline experienced by coal companies during the 2014 through early 2016 time period.  Was the coal industry being creatively destroyed as more climate-friendly substitutes (e.g. natural gas) became more viable and less expensive?  Alternatively, did the role played by the regulatory process, at a minimum, contribute to the coal industry’s demise?…

Read More

Stephannie Larocque's Paper, "Manager's Cost of Equity Capital Estimates: Empirical Evidence," will be published in the Journal of Accounting, Auditing and Finance. Larocque co-authored the paper with Alastair Lawrence, UC Berkeley, and Kevin Veenstra, McMaster University.

 Abstract:      

Using actual practice data from U.S. corporate treasury executives, we provide initial evidence of managers’ internal estimates of their firms’ cost of equity capital (COEC) and extrapolate managers’ estimation practices to the broader population of public firms. Our study provides insights into the assumptions managers use in applying the capital asset pricing model (CAPM), the model that managers generally use to estimate their firms’ COEC according to prior research. We show that COEC estimates based on managers’ surveyed estimation practices are positively correlated with realized returns only in the pre-survey period, suggesting that managers set their COEC estimates in a backward-looking manner. Moreover, managers’ estimates are most correlated with estimates reverse-engineered following Easton (2004) and Gode and Mohanram (2003).…

Read More

Many publicly traded banks wrapped up their second-quarter earnings reports before the end of July. Some banks didn’t, but for that group, investors actually might have had an early window into their performance: The banks’ quarterly regulatory filings, known as “call reports,” were likely already available, according to a new study by researchers at the University of Notre Dame.

Read More

There’s a hidden way to get detailed financial data on publicly traded U.S. banks days before the companies release their earnings. The information is accurate, free, and -- most important -- totally legal.

The source is the federal government, which publishes snapshots of banks’ financial pictures, known as call reports, on a hard-to-find website…

Read More

Independent research by the University of Notre Dame shows that bank call reports have a material effect on U.S. equity markets. Conclusions also state that the effect increases as asset size decreases, indicating that small and medium-sized banks are quietly releasing a flood of mandatory but market-moving information to the public with little to no fanfare.…

Read More