Disclosure; Accounting Standards and Regulations; Financial Markets; Security Analysts
I am an associate professor of accounting, and I teach managerial accounting at the Alberta School of Business. I study financial disclosure, and related accounting standards and regulations using information economics, cognitive science and accounting theory. I use complementary research methodologies including analytical modeling and laboratory experiments. My research has been published in the Journal of Accounting Research, Management Science, and Organization Science.
Before becoming a professor, I spent 8 years in industry. I graduated from the Indian Institute of Technology (I.I.T.), Kharagpur (B.Tech.), and the University of Minnesota (Ph.D.).
SSRN author page: http://ssrn.com/author=1887697
1) Banerjee, S. 2020. Does competition improve analysts' forecast informativeness? forthcoming in Management Science
What is it about: Competition for higher rankings in forecast accuracy can reduce the informativeness of analyst forecasts. More intense competition can make forecasts less informative.
2) Banerjee, S., and M. Maier. 2016. Public information precision and coordination failure: An experiment. Journal of Accounting Research. 54(4): 941-985.
What is it about: Greater transparency can lead to inferior economic outcomes such as coordination failures (bank runs) when public information is pessimistic. As such, a coarser, aggregated disclosure can be better (than a granular, dis-aggregated disclosure) in reducing coordination failures.
3) Zaheer, A., E. Hernandez, and S. Banerjee. 2010. Prior alliances with targets and acquisition performance in knowledge-intensive industries. Organization Science. 21(5): 1072 - 1091.
What is it about: Prior alliances with a target company can improve the performance of an acquiring company when there is a large information asymmetry between the target and the acquirer (as in knowledge-intensive industries such as biotech and software).
4) Inattention to information with low clarity: An experiment on beauty contests (with Hong Qu and Ran Zhao).
What is it about: When investors can access multiple information sources (e.g., firm disclosures, analyst reports, news and social media), strong coordination (beauty contest) incentives lead them to ignore a firm disclosure if it is not sufficiently clear. Instead, investors may focus on information sources with high clarity but low value-relevance such as rumors and even fake news.
5) Clear and liquid: The interaction of firm disclosure and trader competition (with Efstathios Avdis).
What is it about: Accuracy of disclosure (i.e., how accurately a disclosure reports a company's future value) and clarity of disclosure (i.e., how well traders understand the disclosed information) have qualitatively different effects on trading in financial markets. Low-clarity disclosure can reduce a company's market liquidity and trading volume.
6) More carrots or more sticks? The role of payoff structure in forecasting contests.
Research In Progress
7) Strategic obfuscation
8) Disclosure and feedback through investor networks and social media
9) Information acquisition in short-horizon trading: An experimental analysis.
Second of two courses (see ACCTG 414) covering principles, methods and applications of current and proposed Generally Accepted Accounting Principles (GAAP). Emphasizes accounting for financing, liabilities and equity, related income measurement and disclosure, and cash flow. Prerequisites: FIN 301, and a minimum grade of C- in ACCTG 414 or 412.Winter Term 2021
Accounting concepts used by managers in planning and decision-making. The course introduces concepts of cost and profit behavior, contribution margin, and activity-based costing, as well as relevant costs and revenues for production, marketing and capital budgeting decisions. The course also introduces students to the management planning and control system and its components - budgets, variance analysis, performance evaluation in centralized and decentralized organizations, and management compensation plans. The importance of designing a system to fit the organizations' strategy is emphasized. Prerequisite: ACCTG 501.Winter Term 2021
Second of two courses covering theory, methods, strengths, and weaknesses of current Generally Accepted Accounting Principles (GAAP). Prerequisite: ACCTG 614. Students may receive credit for only two of the following three courses: ACCTG 610, 614, and 615.Winter Term 2021