Steven J. Huddart
Smeal Chair Professor Accounting
Senior Associate Dean
Steven Huddart is the Smeal Chair Professor of Accounting and the Senior Associate Dean for Research and Faculty. From 2011 to 2018, he served as the Accounting Department Head. Professor Huddart's research examines how decisions are affected by information, incentives, social norms, and behavioral biases. He has examined the relationships between disclosure and insider trading; the financial reporting, taxation, compensation, and valuation aspects of employee stock options; the effects of ownership structure on corporate value; the determinants of investors' decisions to trade; and measures of quality for financial statement data. He has taught financial accounting, managerial accounting, and tax planning. Professor Huddart has published cases on indirect cost allocation and the taxation of a corporate acquisition. Before coming to Smeal, he taught at Duke, Michigan, and Stanford. He is a Chartered Professional Accountant (Canada). He has served as an editor of Contemporary Accounting Research and The Accounting Review, and on the editorial boards of Contemporary Accounting Research, the Journal of Accounting & Economics, the Review of Accounting Studies, and the Journal of Accounting Case Research.
Expertise
stock-based compensation. insider trading.
Education
Ph D, Yale University, New Haven, CT, 1991-05-01 M Phil, Yale University, New Haven, CT, 1988-01-01 MA, Yale University, New Haven, CT, 1988-01-01 BMath, The University of Waterloo, Waterloo, Canada, 1985-01-01
Courses Taught
ACCTG 211 – Financial and Managerial Accounting for Decision Making
Introduction to the role of accounting numbers in the process of managing a business and in investor decision making.
ACCTG 404 – Managerial Accounting: Economic Perspective
Accounting techniques as planning, control, and motivating devices in business and other organizations; accounting data for decision making and performance evaluation.
ACCTG 481 – Fin Anal Eval Dec
An accounting based evaluation and decision making approach to analyzing financial statements by studying business and firm valuation.ACCTG 481 Financial Statement Analysis (3) The proposed course in financial statement analysis is structured to improve the student's ability to extract and interpret information from actual financial statements and to expose the student to how financial statement information is integrated into equity valuation and credit analysis. The course would not only rely upon textbook-based and lecture-based learning, but also emphasize case-based learning.The course will consist of two main sections. The first will deal with accounting and business analysis. This part will explore the types of financial information data typically available for publicly traded companies and introduce a model of the economic drivers of company performance. It would incorporate some technical accounting as well as some standards business economics/strategy concepts. Students will be forced to recast financial statements that they believe do not reflect the underlying economic state of the company. Financial reporting issues relating to revenue and expense recognition, leases and consolidations will be discussed.The other section of the course will deal with firm valuation. Students would be exposed to some standard approaches to equity valuation and the analysis activities underlying these approaches. Aspects of valuation that would be covered in this section of the course are financial ratio analysis, forecasting, pro-forma statements, cost of capital and valuation methods.The course will rely on lectures and extensive use of case studies.
ACCTG 550 – Taxation and Management Decisions
Framework for understanding the effects of taxes on business decisions and fordevising effective tax planning strategies.
ACCTG 590 – Colloquium
Continuing seminars which consist of a series of individual lectures by faculty, students, or outside speakers.
ACCTG 596
Creative projects, including nonthesis research, which are supervised on an individual basis and which fall outside the scope of formal courses.
ACCTG 596 – Individual Studies
Creative projects, including nonthesis research, which are supervised on an individual basis and which fall outside the scope of formal courses.
ACCTG 597 – Special Topics
Formal courses given on a topical or special interest subject which may be offered infrequently; several different topics may be taught in one year or term.
ACCTG 597E – Analytical Modeling (E)
Seminar on anaytical modeling in accounting.
ACCTG 597E – Research in Analytical Modeling (E)
Formal courses given on a topical or special interest subject which may be offered infrequently; several different topics may be taught in one year or term.
ACCTG 597E – Research Seminar in Analytical Modeling (E)
Formal courses given on a topical or special interest subject which may be offered infrequently; several different topics may be taught in one year or term.
B A 521 – Introduction to Managerial Accounting
Cost accounting and the design of management accounting systems for planning and controlling operations, and for motivating personnel.
B A 574 – Business Research
A project paper, comparable in quality and scope of work to a graduate thesis, on problems of a company.
Selected Publications
Huddart S. J., Qu H. "Rotten Apples and Sterling Examples: Norm-Based Moral Reasoning and Peer Influences on Honesty" Journal of Management Accounting Research, vol. 36, 2024-06-01
Du K., Huddart S. J., Jiang X. D. "Lost in Standardization: Effects of Financial Statement Database Discrepancies on Inference" Journal of Accounting & Economics, vol. 76, 2023-08-01
Hofmann C., Huddart S. J., Pfeiffer T. "An analysis of net-outcome contracting with applications to equity-based compensation" Review of Accounting Studies, vol. 28, 2022-05-16
Du K., Huddart S. J., Xue L., Zhang Y. "Using a Hidden Markov Model to Measure Earnings Quality" Journal of Accounting & Economics, vol. 69, 2020-12-01
Du K., Huddart S. J. "Economic persistence, earnings informativeness, and stock return regularities" Review of Accounting Studies, 2020-04-23
Huddart S. J., Yavas A. "The efficiency of stock-based incentives: experimental evidence" Journal of Behavioral Finance, vol. 18, 2017-07-01
Huddart S. J. "Discussion of "The Effects of Vertical Pay Dispersion: Experimental Evidence in a Budget Setting"" Contemporary Accounting Research, vol. 34, 2017-01-01
Huddart S. J. "Discussion of "Empirical Evidence on the Implicit Determinants of Compensation in Big 4 Audit Partnerships"" Journal of Accounting Research, vol. 51, 2013-01-01
Bozanic Z., Dirsmith M. W., Huddart S. J. "The social constitution of regulation: The endogenization of insider trading laws" Accounting, Organizations & Society, vol. 37, 2012-01-01
Huddart S. J., Lang M., Yetman M. H. "Volume and Price Patterns Around a Stock's 52-Week Highs and Lows: Theory and Evidence" Management Science, vol. 55, 2009-01-01
Fischer P., Huddart S. J. "Optimal Contracting with Endogenous Social Norms" American Economic Review, vol. 98, 2008-09-01
Huddart S. J. "Three Patterns in Need of a Unified Theory" Accounting Horizons, vol. 22, 2008-01-01
Huddart S. J., Ke B. "Information asymmetry and cross-sectional variation in insider trading" Contemporary Accounting Research, vol. 24, 2007-01-01
Huddart S. J., Ke B., Shi C. "Jeopardy, non-public information, and insider trading around SEC 10-K and 10-Q filings" Journal of Accounting & Economics, vol. 43, 2007-01-01
Huddart S. J., Liang P. J. "Profit sharing and monitoring in partnerships" Journal of Accounting & Economics, vol. 40, 2005-01-01
Huddart S. J., Liang P. J. "Accounting in partnerships" The American Economic Review, vol. 93, 2003-01-01
Huddart S. J., Lang M. "Information distribution within firms: evidence from stock option exercises" Journal of Accounting & Economics, vol. 34, 2003-01-01
Ke B., Petroni K., Huddart S. J. "What Insiders Know About Future Earnings and How They Use It: Evidence from Insider Trades" Journal of Accounting & Economics, vol. 35, 2003-01-01
Huddart S. J., Narayanan V. "An empirical examination of tax factors and mutual funds’ stock sales decisions" Review of Accounting Studies, vol. 7, 2002-01-01
Huddart S. J., Hughes J. S., Levine C. B. "Public disclosure and dissimulation of insider trades" Econometrica, vol. 69, 2001-01-01
Huddart S. J., Hughes J. S., Brunnermeier M. "Disclosure requirements and stock exchange listing choice in an international context" Journal of Accounting & Economics, vol. 26, 1999-01-01
Huddart S. J. "Patterns of stock option exercise in the United States" Executive compensation and shareholder value, 1999-01-01
Heath C., Huddart S. J., Lang M. "Psychological factors and stock option exercise" The Quarterly Journal of Economics, vol. 114, 1999-01-01
Huddart S. J. "Reputation and performance fee effects on portfolio choice by investment advisers" Journal of Financial Markets, vol. 2, 1999-01-01
Saly P. J., Jagannathan R., Huddart S. J. "Valuing the reload features of executive stock options" Accounting Horizons, vol. 13, 1999-01-01
Huddart S. J. "Tax planning and the exercise of employee stock options" Contemporary Accounting Research, vol. 15, 1998-01-01
Huddart S. J., Lang M. "Employee stock option exercises an empirical analysis" Journal of Accounting & Economics, vol. 21, 1996-01-01
Huddart S. J. "Employee stock options" Journal of Accounting & Economics, vol. 18, 1994-01-01
Huddart S. J. "The effect of a large shareholder on corporate value" Management Science, vol. 39, 1993-01-01
Honors and Awards
Fellow, Academic Leadership Program, Big Ten Academic Alliance, (2018-09-01)
Glen McLaughlin Prize for Research in Accounting Ethics, University of Oklahoma, (2005-12-31)
Best paper award, Journal of Accounting & Economics Conference on Accounting and Economics in the New Economy, Journal of Accounting & Economics, (2001-12-31)