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2nd tier favorite by Sirin Samman. Students gathered together

Accounting Insights @ CBS

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Top Read

About a decade ago, fossil-fuel divestment campaigns began to spread across U.S. college campuses and within other institutions in an effort to exert economic, political, and social power in combating climate change.
Social Enterprise
ESG
Economics & Policy

Does Divesting From ‘Sin Stocks’ Really Hurt Targeted Companies?

New research challenges the accepted wisdom that shunning companies that fail to meet your values puts pressure on them or puts them out of business.

Read More
Type
Columbia Business
Date
September 19, 2022
Social Enterprise
Climate and finance
ESG
Economics & Policy

Davos 2022 and the Climate Crisis: CBS Experts Weigh in on the World Economic Forum’s Priorities, Agenda

Leaders must focus on implementing ideas, taking action, and making the transition to clean energy part of their core business strategy.

Read More
Type
Chazen Global Insights
Date
September 22, 2020
Finance

Advice to the Next US President: Accounting

Our fiscal health is in shambles. Accounting can help fix it, says Chazen Senior Scholar Shivaram Rajgopal.

Read More
Type
Ideas at Work
Date
April 3, 2020
Analytics
Economics & Policy
Finance
Healthcare
Leading through Crisis
World Business

Investing in Times of (the Coronavirus) Crisis

Investing in Times of (the Coronavirus) Crisis

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Research

On Cost Tradeoffs Between Conservative and Market-Value Accounting

Authors
Joseph Bachar and Guy Weyns
Date
March 1, 1997
Format
Journal Article
Journal
Review of Accounting Studies
We identify a cost tradeoff relevant to the comparison of alternative accounting regimes. We compare equilibrium deadweight losses, due to transacting and auditing, across the historical cost, lower-of-cost-or-market, and market value regimes. We provide conditions for each of the regimes to dominate the other two. We show that while market-value accounting is likely to prevail in an inflationary setting, it may also be optimal under deflation. Similarly, lower-of-cost-or-market is likely to prevail in a deflationary setting, though it may also be optimal under inflation.
Read More about On Cost Tradeoffs Between Conservative and Market-Value Accounting

Managerial Performance Evaluation and Real Options

Authors
Tim Baldenius, A. Nezlobin, and I. Vaysman
Date
January 1, 2016
Format
Journal Article
Journal
The Accounting Review

In a dynamic setting with demand following a random process, we ask how investment and operating decisions can be delegated to a manager with unknown time preferences. Only the manager observes the demand realization in each period and, therefore, has private information when choosing whether to acquire the productive asset and, subsequently, how to utilize it. We derive accrual accounting-based performance measures under which the manager will make the efficient decisions provided the investment date is exogenously given.

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How Does Financial-Reporting Regulation Affect Industry-Wide Resource Allocation?

Authors
Matthias Breuer
Date
March 1, 2021
Format
Journal Article
Journal
Journal of Accounting Research

This paper examines the impact of mandatory reporting and auditing of firms' financial statements on industry-wide resource allocation. Using threshold-induced variation in the share of mandated firms in a given industry, I document that reporting mandates facilitate ownership dispersion in capital markets and spur competition in product markets. I, however, do not find that reporting mandates unambiguously improve the efficiency of industry-wide resource allocation. With respect to auditing mandates, I find only that they impose a fixed cost on firms, deterring smaller entrants.

Read More about How Does Financial-Reporting Regulation Affect Industry-Wide Resource Allocation?

Using Accounting Information for Consumption Planning and Equity Valuation

Authors
Date
September 1, 2007
Format
Journal Article
Journal
Review of Accounting Studies
This article develops a consumption-based valuation model that treats earnings and cash flow as complementary information sources. The model integrates three ideas that do not appear in traditional valuation models: (i) earnings provide information about future shocks to cash flow; (ii) earnings contain indiscernible transient accruals; and (iii) investors use cash flow and earnings to make allocation and consumption decisions and set price. Accordingly, the quality of earnings affects production and consumption as well as price.
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Comparing Alternative Hedge Accounting Standards: Shareholders' Perspectives

Authors
Guy Weyns and Amir Ziv
Date
December 1, 1999
Format
Journal Article
Journal
Review of Accounting Studies

We study the economic consequences of alternative hedge accounting rules in terms of managerial hedging decisions and wealth effects for shareholders. The rules we consider include the "fair-value" and "cash-flow" hedge accounting methods prescribed by the recent SFAS No. 133. We illustrate that the accounting method used influences the manager's hedge decision. We show that under no-hedge accounting, the hedge choice is different from the optimal economic hedge the firm would make under symmetric and public information.

Read More about Comparing Alternative Hedge Accounting Standards: Shareholders' Perspectives
  • More Accounting Research

In the News

Date
October 25, 2020
Faculty Member
Shivaram Rajgopal

What's The Future Of ESG Investing?

Forbes
Date
November 15, 2019
Faculty Member
Trevor Harris

Goodwill Accounting Could Go Back to the Future

Bloomberg News
Date
November 13, 2023
Faculty Member
Shivaram Rajgopal

New FASB Expenses Disclosure Proposal Vexes Finance Leaders

Agenda Week
Date
November 10, 2023
Faculty Member
Wei Cai

Sorry Bosses, but Your Team May Not Want to Hang out with You at Christmas Parties Anymore: Steer Clear of the ‘Back in My Day’ Trap

Fortune
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