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Professor Gilad Livne

Professor Gilad Livne

Professor of Accounting

4436

+44 (0) 1392 724436

1.18B
Streatham Court, University of Exeter, Rennes Drive, Exeter, EX4 4PU, UK

Prior to joining University of Exeter Business School Gilad served on the accounting faculty of the London Business School and Cass Business School. He received his MSc and PhD in accounting at the University of California at Berkeley in 1996. Gilad is a CPA (Certified Public Accountant, Israel) and worked several years as a senior auditor in Israel, after completing his BA in accounting and economics at Tel Aviv University.

Gilad's teaching involves financial statement analysis, international accounting as well as introductory and advanced financial accounting courses. Gilad has taught on Undergraduate, MBA, Executive MBA, Sloan and MSc programmes. In addition to teaching at Cass and LBS, Gilad has also taught at Lancaster University, HEC Paris, New Economic School (Moscow), Oulu University and on various company-specific programmes. Gilad has also conducted consulting activities on corporate disclosure issues.

Current research looks into auditor independence, international accounting, fair value accounting, and compensation. His research has been published in Review of Accounting Studies, Journal of Banking and Finance, Journal of Corporate Finance, Journal of Business Finance and Accounting and European Accounting Review. Gilad has widely presented his research in conferences and universities in Asia, Australia, Europe and the United States.

Nationality: British

Qualifications

PhD, CPA

Research

Research interests

  • Auditor Independence
  • International Accounting
  • Managerial Compensation

Auditor Independence: Auditors work on behalf of shareholders but are paid by management. This gives rise to potential economic independence problem.

One solution adopted by some countries to the independence problem is by requiring regular rotation of the auditor. I am interested to find out whether mandatory auditor rotations are related to improved reporting quality, as would be expected if independence is enhanced.

I am interested in the effects of the Sarbanes-Oxley Act of 2002 on auditors’ behaviour and whether it reduced the problem of economic independence. In my research I also investigate whether auditor economic independence is related to cost of capital of audited firms.

International Accounting: Since 2005 firms listed on an EU stock exchange have to report under IFRS. The US now permits foreign firms to report under IFRS without reconciliations, allowing a broader range of IFRS-reporting countries to list anywhere in the world. I am interested in understanding the reporting choices foreign registrants in the US make and whether the commitment to abide by US law and the threat of US enforcement shape earnings management in foreign IPOs.  

Managerial Compensation: Reporting choices are shaped by incentives, such those that stem from compensation contracts. While this furnishes many opportunities for research, I am particularly interested in the effects of fair value accounting on managerial compensation. In carrying out this research I note that compensation provides incentives for managers to take certain actions that affect the performance and risk profile of their firms. The concern is that fair value accounting provides perverse incentive for managers to manipulate earnings upwards while assuming more risky projects. This is because fair value accounting is based on estimates of outcomes of transactions that may be resolved after managers are paid (creating the clawback problem).

Key publications | Publications by category | Publications by year

Publications by category


Books

Picker R, Clark K, Dunn J, Kolitz D, Livne G, Loftus J, van der Tas L (2016). Applying International Financial Reporting Standards., John Wiley & Sons. Abstract.

Journal articles

Livne G, Markarian G, Mironov M (2013). Investment horizon, risk, and compensation in the banking industry. Journal of Banking and Finance, 37(9), 3669-3680. Abstract.
Livne G, Markarian G, Milne A (2011). Bankers' compensation and fair value accounting. Journal of Corporate Finance, 17(4), 1096-1115. Abstract.
Livne G, Simpson A, Talmor E (2011). Do Customer Acquisition Cost, Retention and Usage Matter to Firm Performance and Valuation?. Journal of Business Finance and Accounting, 38(3-4), 334-363. Abstract.
Amir E, Guan Y, Livne G (2010). Auditor independence and the cost of capital before and after Sarbanes-Oxley: the case of newly issued public debt. European Accounting Review, 19(4), 633-664. Abstract.
Livne G, McNichols M (2009). An empirical investigation of the true and fair override in the United Kingdom. Journal of Business Finance and Accounting, 36(1-2), 1-30. Abstract.
Livne G (2007). Discussion of divergence of opinion and post acquisition performance. Journal of Business Finance and Accounting, 34(3-4), 461-466.
Amir E, Guan Y, Livne G (2007). The association of R&D and capital expenditures with subsequent earnings variability. Journal of Business Finance and Accounting, 34(1-2), 222-246. Abstract.
Amir E, Livne G (2005). Accounting, valuation and duration of football player contracts. Journal of Business Finance and Accounting, 32(3-4), 549-586. Abstract.
Livne G (2000). Information asymmetry, investment horizons, and the dual role of public announcements. Review of Accounting Studies, 5(2), 127-153. Abstract.

Chapters

Livne G (2014). Accounting for human capital. In Clubb C, Imam S (Eds.) Wiley Encyclopedia of Management, Wiley, 9-12.
Livne G (2012). Threats to Auditor Independence and Possible Remedies. In  (Ed) Effective Auditing for Corporates,, http://www.financepractitioner.com/auditing-best-practice/threats-to-auditor-independence-and-possible-remedies?page=1: Bloomsbury Publishing, 41-56.  Abstract.

Reports

Livne G, Milne A, Davies B (2010). The Accounting Statements of Global Financial Institutions and the Recent Crisis. ACCA,  http://www.accaglobal.com/content/dam/acca/global/PDF-technical/corporate-governance/tech-afb-asg2.pdf.

Publications by year


2016

Picker R, Clark K, Dunn J, Kolitz D, Livne G, Loftus J, van der Tas L (2016). Applying International Financial Reporting Standards., John Wiley & Sons. Abstract.

2014

Livne G (2014). Accounting for human capital. In Clubb C, Imam S (Eds.) Wiley Encyclopedia of Management, Wiley, 9-12.

2013

Livne G, Markarian G, Mironov M (2013). Investment horizon, risk, and compensation in the banking industry. Journal of Banking and Finance, 37(9), 3669-3680. Abstract.

2012

Livne G (2012). Threats to Auditor Independence and Possible Remedies. In  (Ed) Effective Auditing for Corporates,, http://www.financepractitioner.com/auditing-best-practice/threats-to-auditor-independence-and-possible-remedies?page=1: Bloomsbury Publishing, 41-56.  Abstract.

2011

Livne G, Markarian G, Milne A (2011). Bankers' compensation and fair value accounting. Journal of Corporate Finance, 17(4), 1096-1115. Abstract.
Livne G, Simpson A, Talmor E (2011). Do Customer Acquisition Cost, Retention and Usage Matter to Firm Performance and Valuation?. Journal of Business Finance and Accounting, 38(3-4), 334-363. Abstract.

2010

Amir E, Guan Y, Livne G (2010). Auditor independence and the cost of capital before and after Sarbanes-Oxley: the case of newly issued public debt. European Accounting Review, 19(4), 633-664. Abstract.
Livne G, Milne A, Davies B (2010). The Accounting Statements of Global Financial Institutions and the Recent Crisis. ACCA,  http://www.accaglobal.com/content/dam/acca/global/PDF-technical/corporate-governance/tech-afb-asg2.pdf.

2009

Livne G, McNichols M (2009). An empirical investigation of the true and fair override in the United Kingdom. Journal of Business Finance and Accounting, 36(1-2), 1-30. Abstract.

2007

Livne G (2007). Discussion of divergence of opinion and post acquisition performance. Journal of Business Finance and Accounting, 34(3-4), 461-466.
Amir E, Guan Y, Livne G (2007). The association of R&D and capital expenditures with subsequent earnings variability. Journal of Business Finance and Accounting, 34(1-2), 222-246. Abstract.

2005

Amir E, Livne G (2005). Accounting, valuation and duration of football player contracts. Journal of Business Finance and Accounting, 32(3-4), 549-586. Abstract.

2000

Livne G (2000). Information asymmetry, investment horizons, and the dual role of public announcements. Review of Accounting Studies, 5(2), 127-153. Abstract.

Awards and Honours

  • Excellence in Teaching: The Interesting Teaching Approach, New Economic School, 2013
  • Excellence in Teaching and Learning Prize, Sir John Cass Business School, 2005
  • Resident Faculty at the American Accounting Association Doctoral Consortium, 2003
  • Outstanding Graduate Student Instructor Award, University of California at Berkeley, 1994
    American Accounting Association Doctoral Consortium Fellow, 1994
  • Main Hurdman Fellowship, 1992-1993

External positions

  • Viva
    Weijia Li – Lancaster University, 2014
    Itay Kama – Tel Aviv University, 2006
  • External Examiner
    London School of Economics (since August 2015)
    Warwick 2012
  • Editorial board membership
    European Accounting Review (since January 2016)
    Accounting and Business Research (Associate Editor since February 2014)
    Auditing: A Journal of Practice & Theory (Since July 2014)
    Journal of Business Finance and Accounting (since December 2008)
    International Journal of Auditing (since November 2009)

  • Financial Statement Analysis
  • Financial Reporting
  • International Accounting
  • Valuation

Modules

2016/17