Research in Accounting and Finance
As a department, we invest heavily in our research-related infrastructure with the aim of creating an environment in which ideas flourish and staff members are able to reach their full research potential.
The wide variety of research areas within our department are within two main fields. The first is Accounting, where our principal research strengths are in Bank Accounting and Regulation, Financial Reporting, and Corporate Governance and Auditing. Our second field is Finance, where our main specialisms are in Banking and Corporate Finance, and Asset Pricing and Financial Econometrics.
Our research activities have been supported by a range of external funding bodies including the European Commission, the Economic and Social Research Council (ESRC), The Leverhulme Trust, the Institute of Chartered Accountants in England and Wales (ICAEW), INQUIRE, and the Nuffield Foundation.
Research by our faculty members covers a variety of topics in both Accounting and Finance, organised into five broad research areas. Our faculty have published in some of the very best journals in the field, including the Journal of Accounting and Economics, the Accounting Review, the Review of Accounting Studies, the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies and many other very high quality journals.
Bank Accounting and Regulation
The research in this area aims to understand what role accounting and regulation play in shaping the banking industry and preserving financial stability. The Department has one of the largest research groups in the UK working in the area of Bank Accounting and Regulation, and continues to strengthen its expertise in this area by hiring new faculty and expanding its library of state-of-the-art databases.
The research undertaken by faculty members in this area covers topics of particular interest to the banking industry including accounting for financial instruments, accounting for loan losses, securitisation, accounting for own credit risk, minimum capital requirements, and the interaction between accounting and financial regulation. Faculty members recently authored two papers on accounting for expected credit losses as part of the European Parliament’s endorsement process for IFRS 9 Financial Instruments.
Faculty members in this area have published in leading accounting journals such as The Accounting Review, Journal of Accounting Research, Review of Accounting Studies, Accounting, Organizations and Society, Contemporary Accounting Research, and other reputable accounting journals such as Journal of Business Finance and Accounting, European Accounting Review, Accounting Horizons, Accounting and Business Research, and Abacus.
Research on different aspects of Financial Reporting has been a traditional strength of the department. Our research in the field of valuation has an international reputation and provides a theoretical underpinning for methods used in market based accounting research. Recent contributions to contemporary financial reporting issues include work on the role of financial reporting in capital markets. We continue to strengthen our expertise in the area of Financial Reporting by recruitment and development of faculty and by investing in research infrastructure such as state-of-the-art databases.
The research undertaken by faculty members in this area covers a wide spectrum of topics including aspects of IFRS adoption, accounting for employee stock options, fair value accounting and disclosures, dirty surplus accounting, reporting financial performance, pension accounting, accounting for intangibles, accounting conservatism, earnings quality and textual analysis of financial disclosures.
Our faculty members in this area have published in leading accounting journals such as The Accounting Review, Journal of Accounting Research, Review of Accounting Studies, Accounting, Organizations and Society, Contemporary Accounting Research, and other reputable accounting journals such as Journal of Business Finance and Accounting, European Accounting Review, Accounting and Business Research, and Abacus.
Our faculty members in the area of Financial Reporting maintain close links to regulators, accountancy professional bodies, and academic accounting associations. They serve as editors or editorial board members of high quality journals such as Accounting, Organizations and Society, Journal of Business Finance and Accounting, Accounting and Business Research, and European Accounting Review.
Corporate Governance and Auditing
The Department has a long-standing tradition of research in different aspects of corporate governance. Our expertise in the field of Corporate Governance and Auditing is further strengthened by close work of colleagues examining corporate governance from the viewpoint of accounting and finance research. The research results in the area of Corporate Governance and Auditing are of great public interest and are frequently covered by national and international newspapers.
The research undertaken by our faculty members in this area covers executive compensation, share repurchases, outside directors, importance of different governance arrangements, and aspects of financial audit. Ongoing research projects include design of executive compensation contracts and international evidence on the association between earnings quality and corporate governance arrangements.
Faculty members in this area have published in leading accounting journals such as The Accounting Review, Journal of Accounting and Economics, Contemporary Accounting Research and other reputable accounting journals such as Journal of Business Finance and Accounting, Journal of Corporate Finance, Accounting and Business Research, Corporate Governance: An International Review, and Auditing: A Journal of Practice and Theory.
Asset Pricing and Financial Econometrics
The Department has a long-standing reputation in financial econometrics and derivatives. In recent years, the department has been making significant investments in this area through recruitment and a distinguished visitor scheme.
The research conducted by faculty members in these areas covers a wide spectrum of topics including portfolio optimisation under uncertainty, bond and derivatives pricing, asset pricing dynamics, volatility modelling, high-frequency financial econometrics, understanding of individual trading behaviour, behavioural finance, mutual funds, and real estate.
Faculty members in this area have published in the Journal of Financial and Quantitative Analysis, the Journal of Econometrics, the Journal of Economic Theory, the Journal of Business and Economic Statistics, the Review of Finance, and many other reputable finance journals. Steven Taylor’s book, “Asset Price Dynamics, Volatility, and Prediction” (Princeton University Press, 2005), provides a comprehensive resource for researchers in this area and is being used on advanced-level courses around the world, while his book “Modelling Financial Time Series” (now in its second edition) is widely acknowledged as the definitive textbook on the subject.
Banking and Corporate Finance
In recent years the Department has made a significant investment in both Banking and Corporate Finance, with the recruitment of new faculty at both the senior and junior level, and will continue to do so with the goal of achieving excellence at the highest international standards.
The research undertaken by faculty members in these areas covers a wide spectrum of topics including capital structure, corporate governance, financial constraints and cash flow allocation, investment decisions under uncertainty, corporate payout policy, asymmetric information and contract design, relationship banking and SME financing, credit guarantee programmes, foreign bank entry and financial development, micro and macro-prudential banking supervision, deposit insurance and market discipline, and bank resolution mechanisms.
Faculty members in this area have published in leading finance journals such as the Journal of Finance, the Journal of Financial Economics, the Review of Financial Studies, Management Science and many other high quality finance journals such as the Journal of Financial and Quantitative Analysis, Review of Finance, Journal Money Credit and Banking, Journal of Financial Intermediation, Journal of Corporate Finance, and many other reputable finance journals.
Our faculty members maintain close links to several research networks, international organisations, and central banks such as the CEPR, the International Monetary Fund, the World Bank, the European Central Bank, the Bank of England, the Deutsche Bundesbank and many others.
Many of our faculty members have achieved notable honours over the past few years including Editorships, CEPR fellowships, research grants and best paper awards in recognition of their expertise, high standard of research activities and significant contributions to their relevant disciplines. Visit our faculty member profiles for further details on individual achievements.
Developing your practical knowledge in preparation for your future career is an essential element of your degree, so the Department of Accounting and Finance provides you with access to a number of leading financial databases. This valuable resource enables you to acquire crucial skills that are highly desirable to employers, making you stand out in the competitive job market.
For more information, please contact Justin Chircop