Time：June 8, 2015（Monday）14:30-17：30
Venue：Room 203, Jiageng Bld 2
Topic：Critical evaluation of “Business strategy, economic growth, and earnings quality
Presenter： In-Mu Haw， J. Vaughn and Evelyne H. Wilson Professor of Business and Professor of Accounting， Texas Christian University
Chair: Jinshuai Hu, Associate Professor, Xiamen University
Abstract：
Using Miles and Snow (1978, 2003) strategy typology, two recent studies (Bentley, Omer, and Sharp, CAR 2013; Houqe, Kerr, Monem, and Zijl, TIJA Symposium 2015) investigate whether companies’ business strategies (a prospector strategy that focuses on product innovation vs. a defender strategy that focuses on cost control and efficiency) influence the quality of financial reporting. Both studies identify that business strategy is an important determinant of financial reporting quality. However, while the former finds that prospectors experience financial reporting irregularities, suggesting lower quality of financial reports, the latter documents that prospectors experience more conservative earnings and less earnings management, implying higher quality of earnings. The seminar will compare the two seemingly contradictory studies and critically evaluate the strengths and weaknesses, including the incentives and opportunities associated with business strategies, appropriate measures of conservatism and earnings quality, endogeneity concern, and other research design issues. If time allows, the seminar will also discuss general issues related to research and publication.
Presenter Introductio：
Professor Haw is J. Vaughn and Evelyne H. Wilson Professor of Business and Professor of Accounting at Texas Christian University， associate editor of The International Journal of Accounting（TIJA）。He has published papers on Journal of Accounting Research, The Accounting Review, Journal of Accounting and Economics, Review of Accounting Studies, Contemporary Accounting Research, etc.He has won awards including Executive MBA Outstanding Professor Award (8 times), Award for Distinguished Scholar (3 times), Teaching Award, Research Award, Alumni Professor of the Year Award, Vernon K. Zimmerman Outstanding Paper Award, and Rintaro Aoki Outstanding Paper Award.
Paper：