Leading Auditing Research Published by SOA Prof. Jian Zhou

SOA Professor Jian Zhou received the College's Shirley M. Lee Research award. He published "Languages and Earnings Management" in the Journal of Accounting and Economics. In that article the co-authors predict that managers of firms in countries where languages do not require speakers to grammatically mark future events perceive future consequences of earnings management to be more imminent, and therefore they are less likely to engage in earnings management. Using data from 38 countries, they found that accrual-based earnings management and real earnings management are less prevalent where there is weaker time disassociation in the language. Their study was the first to examine the relation between the grammatical structure of languages and financial reporting characteristics, and it extends the literature on the effect of informal institutions on corporate actions. Prof. Zhou has also published "Do Banks Price Independent Directors' Attention?" in the Journal of Financial and Quantitative Analysis and "The Monitoring Effectiveness of Co-opted Audit Committees" in Contemporary Accounting Research.