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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 clusters

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).

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