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Keeping Accounting Accountable

when Richard Sloan discovered the “Accrual Anomaly” nearly 25 years ago, he transformed business practice for investors and investment managers. He didn't stop there.

February 19, 2020
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“My research strives to be relevant to practice.”

 

History now shows that when Richard Sloan discovered the “Accrual Anomaly” nearly 25 years ago, he transformed business practice for investors and investment managers. The finding, published in The Accounting Review in July 1996, revealed the influence of accounting estimates on reported earnings, and their capacity to distort stock prices. Its impact on academia and practice was recognized in 2016 when Sloan won accounting’s top prize, the American Accounting Association’s Seminal Contributions to the Accounting Literature Award.

Among this and his many other accomplishments, Sloan is noted for his book, Equity Valuation and Analysis with eVal, co-authored with Russell Lundholm (McGraw-Hill 2003). Now in its fifth edition (Kindle Direct Publishing 2019), the work balances theory and practice, and has become a popular resource for assessing corporate value.

Sloan’s current studies range from, “Fundamental Analysis Redux,” (Accounting Review, 2019), to “Explaining the Profitability Anomaly,” with Ryan Erhard (SSRN, August 2019). His research focus has included non-GAAP earnings, short-sales and IPO pricing, accounting misconduct, and the persistence of losses vs. profits.

Sloan joined the faculty of the Leventhal School of Accounting in 2018, after serving as Chaired Professor of Accounting at the Haas School of Business at UC Berkeley from 2009 to 2018. Prior to that he was Managing Director of Equity Research at Barclays Global Investors, the Victor L. Bernard PricewaterhouseCoopers Collegiate Professor of Accounting and Professor of Finance at the Ross School of Business at the University of Michigan, and Assistant Professor of Accounting at the Wharton School.

In addition to research and teaching, Sloan has been editor of Review of Accounting Studies since 2000, associate editor of the Journal of Financial Economics since 2003, and has been on the Editorial Board of the Australian Journal of Management since 2011. He earned his MS and Ph.D. in accounting and finance from the W. E. Simon Graduate School of Business Administration and his Bachelor of Commerce at the University of Western Australia.