SP Kothari

Gordon Y Billard Professor of Accounting and Finance
Deputy Dean

Biography | Selected Publications

"The Behavior of Aggregate Corporate Investment," Kothari, S., Lewellen, J., Warner, J., MIT Sloan School of Management Working Paper, 2014

"Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism," R. Ball, S. Kothari, V. Nikolaev, Journal of Accounting Research, 51, 1071-1097 (2013)

"On Estimating Conditional Conservatism," Ball, R., Kothari, S., Nikolaev, V., The Accounting Review 88, 755-787 (2013)

"The Effect of Corporate Transparency on Bank Risk-Taking and Banking System Fragility," Jayaraman, S., Kothari, S., MIT Sloan School of Management, 5111-13, 2013

"Generating Superior Performance in Private Equity: A New Investment Methodology," Kothari, S., Swamy, G., Danilov, K., Journal of Investment Management 11, 28-41 (2012)

"The Role of Accounting in the Financial Crisis: Lessons for the Future," Kothari, S., Lester, R., Accounting Horizons 26, 335-351 (2012)

"Properties of Implied Cost of Capital Using Analysts’ Forecasts," Guay, W., Kothari, S., Shu, S., Australian Journal of Management 36, 125-149 (2011)

"The Value of Earnings Comparability," DeFranco, G., Kothari, S., Verdi, R., Journal of Accounting Research 49, 895-931 (2011)

Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism (2010)

"Implications for GAAP from an Analysis of Positive Research in Accounting," Kothari, S., Ramanna, K., Skinner, D., Journal of Accounting & Economics 50, 246-286 (2010)

"Do managers withhold bad news?" Kothari, S., Shu, S., Wysocki, P., Journal of Accounting Research 47, 241-276 (2009)

"The Effect of Disclosures by Management, Analysts, and Financial Press on the Equity Cost of Capital: A Study Using Content Analysis," Kothari, S., Li, X., Short, J.,  The Accounting Review 84, 1639-1670 (2009)

"Effect of Personal Taxes on Managers’ Decision to Sell Unrestricted Equity," Jin, L., Kothari, S., Journal of Accounting & Economics 46, 23-46 (2008)

"Investment Banking and Analyst Objectivity:  Evidence from Analysts Affiliated with M&A Advisors," Kolasinski, A., Kothari, S., Journal of Financial and Quantitative Analysis 43, 817-842 (2008)

Kothari, S., Warner, J. "Econometrics of Event Studies," in Espen Eckbo, Ed., Handbook of Empirical Corporate Finance (Elsevier/North-Holland). (2007)

"Determinants of the Informativeness of Analyst Research," Frankel, R., Kothari, S., Weber, J., Journal of Accounting & Economics 41, 29-54 (2006)

"Stock Returns, Aggregate Earnings Surprises, and Behavioral Finance," Kothari, S., Lewellen, J., Warner, J., Journal of Financial Economics 79, 537-568 (2006)

"Implications of Survival and Data Trimming for Tests of Market Efficiency," Kothari, S., Sabino, J., Zach, T., Journal of Accounting & Economics 39, 129-161 (2005)

"Matching Delivered Performance," Barclay, M., Gode, D., Kothari, S., Journal of Contemporary Accounting & Economics 1, 1-25 (2005)

"Performance Matched Discretionary Accrual Measures," Kothari, S., Leone, A., Wasley, C., Journal of Accounting & Economics, 39, 163-197 (2005)

"Asset Allocation with Inflation-Protected Bonds," Kothari, S., Shanken, J.,  Financial Analysts Journal 60, 54-70 (2004)

"Testing Behavioral Finance Theories Using Trends and Consistency in Financial Performance," Chan, W., Kothari, S., Frankel, R., Journal of Accounting & Economics, 38, 3-50 (2004)

"Accounting for Employee Stock Options," Guay, W., Kothari, S., Sloan, R., American Economic Review 93, 405-409 (2003)

"How Much Do Firms Hedge with Derivatives?" Guay, W., Kothari, S., Journal of Financial Economics, 70, 423-461.  (2003)

"Time-Series Coefficient Variation in Value-Relevance Regressions: A Discussion of Core, Guay, and Van Buskirk and New Evidence," Kothari, S., Shanken, J.,Journal of Accounting & Economics 34, 69-87 (2003)

Kothari, S., Shanken, J., . Anomalies and Efficient Portfolio Formation. Association of Investment Management Research, Charlottesville, VA.  (2002)

"Capitalization versus Expensing: Evidence on the Uncertainty of Future Earnings from Capital Expenditures versus R&D Outlays," Kothari, S., Laguerre, T., Leone, A., Review of Accounting Studies, 7, 355-382 (2002)

Contemporary Accounting Research: Synthesis and Critique, Edited by S.P. Kothari, Thomas Z. Lys,  Douglas J. Skinner, Ross L. Watts, and Jerold L. Zimmerman, North-Holland Publishing, 2002.

"The Economic Dilution of Employee Stock Options: Diluted EPS for Valuation and Financial Reporting," Core, J., Guay, W., Kothari, S., The Accounting Review, 77, 627-652 (2002)

"Are Corporations Reducing or Taking Risks with Derivatives?" Hentschel, L., Kothari, S., Journal of Financial and Quantitative Analysis, 36, 93-118 (2001)

"Capital Markets Research in Accounting," Kothari, S., Journal of Accounting & Economics 31, 105-231 (2001)

"Evaluating Mutual Fund Performance," Kothari, S., Warner, J., Journal of Finance, 56, 1985-2010.  (2001)

"Discussion of “The Relation Between Analysts’ Forecasts of Long-Term Earnings Growth and Stock Price Performance Following Equity Offerings,” S. Kothari, Contemporary Accounting Research 17, 33-39 (2000)

S. Kothari, "Role of Financial Reporting in Reducing Financial Risks in the Market," in Eric Rosengren and John Jordan, eds.: Building an Infrastructure for Financial Stability (Federal Reserve Bank of Boston, pp. 89-102).  (2000)

"The Effect of International Institutional Factors on Properties of Accounting Earnings," Ball, R., Kothari, S., Robin, A., Journal of Accounting & Economics 29, 1-51 (2000)

Kothari, S., Shanken, J., "Beta and Book-to-Market: Is the Glass Half Full or Half Empty," in: D. B. Keim and W.T. Ziemba, eds.: Security Market Imperfections in Worldwide Equity Markets (Cambridge, U.K.: Cambridge University Press).  (1999)

"The Relation Between Earnings and Cash Flows,Dechow," P., Kothari, S., Watts, R.,  Journal of Accounting & Economics 25, 133-168 (1998)

"Book-to-Market, Dividend Yield, and Expected Market Returns: a Time-Series Analysis," Kothari, S., Shanken, J., Journal of Financial Economics 44, 169-203 (1997)

"Measuring Long-Horizon Security Price Performance," S. Kothari, J. Warner, Journal of Financial Economics, 43, 301-339


"A Market-based Evaluation of Discretionary-Accrual Models," Guay, W., Kothari, S., Watts, R., Journal of Accounting Research Supplement, 34, 83-115 (1996)

"Another Look at the Cross-Section of Expected Stock Returns," Kothari, S., Shanken, J., Sloan, R., Journal of Finance 50, 185-224 (1995)

"Can We Implement Research on Stock Trading Rules?" Ball, R., Kothari, S., Wasley, C., Journal of Portfolio Management, 21, 54-63 (1995)

"In Defense of Beta," Kothari, S., Shanken, J., Journal of Applied Corporate Finance 8, 53-58 (1995)

"Price and Return Models," Kothari, S., Zimmerman, J., Journal of Accounting and Economics, 20, 155-192. (1995)

"Problems in Measuring Portfolio Performance: An Application to Contrarian Investment Strategies," Ball, R., Kothari, S., Shanken, J., Journal of Financial Economics 38, 79-107 (1995)

Financial Statement Analysis (McGraw-Hill Series in Advanced Topics in Finance and Accounting). New York: McGraw-Hill, 1994.

"Lack of Timeliness and Noise as Explanations for Low Contemporaneous Return-Earnings Association," Collins, D., Kothari, S., Shanken, J., and Sloan, R., Journal of Accounting & Economics, 18, 289-324 (1994)

"Fundamentals Largely Explain Stock Price Volatility," Kothari, S., Shanken, J., Journal of Applied Corporate Finance 6, 81-87 (1993)

"Growth Rates, Not Levels," Kothari, S., Shanken, J., Journal of Applied Corporate Finance 6,111-112 (1993)

"Sensitivity of Multivariate Tests of the CAPM to the Return Measurement Interval," Handa, P., Kothari, S., Wasley, C., Journal of Finance, 48, 1543-1551 (1993)

"The Economics Determinants of the Relation Between Earnings Changes and Stock Returns," Ball, R., Kothari, S., and Watts, R., The Accounting Review, 68, 622-638 (1993)

"Information in Prices About Future Earnings: Implications for Earnings Response Coefficients," Kothari, S., Sloan, R., Journal of Accounting and Economics 15, 143-171 (1992)

"Price-Earnings Regressions in the Presence of Prices Leading Earnings: Earnings Level versus Change Specification and Alternative Deflators," Kothari, S., Journal of Accounting & Economics, 15, 173-202 (1992)

"Stock Return Variation and Expected Dividends: A Time-Series and Cross-Sectional Analysis," Kothari, S., Shanken, J. Journal of Financial Economics 31, 177-210. (1992)

 1991, Security Returns Around Earnings Announcements, Ball, R., Kothari, S.,The Accounting Review, 66, 718-738 (1991)

"An Analysis of the Cross-sectional and Intertemporal Determinants of Earnings Response Coefficients," Collins, D., Kothari, S., Journal of Accounting and Economics, , 11, 143-181 (1989)

"Measuring Security Price Performance in Size Clustered Samples," Kothari, S., Wasley, C., The Accounting Review, ,64, 228-249 (1989)

"Nonstationary Expected Returns: Implications for Tests of Market Efficiency and Serial Correlation in Returns," Ball, R., Kothari, S., Journal of Financial Economics, 25, 51-74 (1989)

"The Relation Between the Return Interval and Betas: Implications for the Size-Effect," Handa, P., Kothari, S., and Wasley, C., Journal of Financial Economics,23, 79-100 (1989)

"Auditor Liability and Information Disclosure," Kothari, S., Lys, T., Smith, C., and Watts, R., Journal of Accounting, Auditing and Finance, 3, 307-339 (1988)

"Firm Size and the Information Content of Prices with Respect to Earnings,"Collins, D, W., Kothari, S., Rayburn J., Journal of Accounting and Economics,9, 111-138 (1987)


Contact Information
Office: E60-382
Tel: (617) 253-0994
Fax: (617) 258-6617
Support Staff
Name: Gilly Parker
Tel: (617) 253-5074
Name: Margaret Lo
Tel: (617) 253-7151
Name: Nancy Leonelli
Tel: (617) 253-6130

Research Center(s)

General Expertise
Capital Markets; Corporate Governance; Disclosure; Domestic; Executive Compensation; Executive compensation; Financial Reporting; India; International; Investment Analysis