Financial Disclosure; Climate Risk; Accounting Standards and Regulations; Financial Markets; Security Analysts
I am an associate professor of accounting, and I teach managerial and financial accounting at the Alberta School of Business. I study corporate disclosure, and related accounting standards and regulations using information economics, cognitive science and accounting theory. I use complementary research methodologies including analytical modeling, laboratory experiments, and archival methods. My research has been published in the Journal of Accounting Research, Management Science, and Organization Science, and funded by Social Sciences and Humanities Council (SSHRC), Government of Canada.
Before becoming a professor, I spent 8 years in industry. I graduated from the Indian Institute of Technology (I.I.T.), Kharagpur (BTech), XLRI Xavier School of Management, India (MBA), and the University of Minnesota (PhD).
SSRN author page: http://ssrn.com/author=1887697
1) Banerjee, S. 2021. Does competition improve analysts' forecast informativeness? Management Science. 67(5), 3219-3238.
Not always. 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.
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.
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).
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).
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.
Research In Progress
6) Analyst tournament
7) Climate risk
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 2022
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 2022