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Maureen McNichols

Maureen   McNichols
Professor, Accounting
Maureen McNichols
Marriner S. Eccles Professor of Public and Private Management Professor of Law (by courtesy), School of Law
Academic Area: 
Accounting

Research Statement

Maureen McNichols’ research examines financial reporting and its role in providing information to investors. Her recent work focuses on earnings quality, on earnings management and on securities analysts. The research on earnings quality examines the informativeness of earnings and its components under alternative accounting principles. The research on earnings management examines companies’ incentives and methods for managing earnings, detection of managed earnings and the consequences for investors. The research on analysts examines their incentives to report information truthfully, how investment banking influences analysts’ behavior, and the implications for investors.

Bio

Maureen McNichols is the Marriner S. Eccles Professor of Public and Private Management at the Graduate School of Business (GSB), Stanford University. Her leading research in two key areas — on earnings management and its implications for investors, and on analysts’ incentives, forecasts, and investment recommendations — has received considerable attention from academics, investors, and regulators in recent years. Her papers appear in the leading journals in accounting and finance and have garnered several Best Paper awards. She is an editor of Review of Accounting Studies, and has served on the editorial boards of Journal of Accounting Research and The Accounting Review.

Professor McNichols has offered courses in financial reporting in a number of Stanford’s programs, including the undergraduate program, the Stanford Law School, the Stanford MBA Program, and Stanford GSB’s PhD Program in accounting. Some of her recent electives include “Evaluating Financial Statement Information,” “Understanding Cheating,” “Securities Analysts’ Forecasts and Recommendations,” and “Financial Management of Nonprofit Organizations.” In addition, she has taught in a number of programs for executives, including Finance and Accounting for the Non-Financial Executive. She is frequently asked to speak on a number of accounting-related topics to accounting faculty, doctoral students, lawyers, and directors of public companies.

Professor McNichols served as chair of Stanford GSB’s accounting group from 1999-2002, as chair of the FAB Executive Committee (2007-2008), and a member of the Stanford University Faculty Senate (2004-2007), the Senate Committee on Committees (2005-2007), the Committee on Undergraduate Admission and Financial Aid (2005-2007), the Stanford University Board of Trustees Finance Committee (2004-2008), and the Provost’s Budget Group (2006-2010). She was a visiting professor at the University of Chicago and the London School of Business, and a visiting scholar at the Hoover Institute. From 2003-2006, she served as a director and member of the audit and compensation committees of Net IQ Corporation. McNichols received her BA and MA in accounting from the University of Illinois and her PhD in accounting from the University of California at Los Angeles. She is certified as a CPA by the state of Illinois, and is a member of the American Accounting Association.

Academic Degrees

  • PhD in Accounting, Graduate School of Management, University of California, Los Angeles, 1984
  • MA in Accounting, University of Illinois, Urbana-Champaign, 1976
  • BA, University of Illinois, Urbana-Champaign, 1975

Academic Appointments

  • At Stanford University since 1983

Awards and Honors

  • Marriner S. Eccles Chair, 2001
  • Best Paper Award, Review of Accounting Studies, 2000
  • Best Paper Award, Review of Accounting Studies, 1998
  • Best Paper Award, Financial Reporting Section, American Accounting Association, 1995
  • CPA Certificate, State of Illinois, 1975

Publications

Journal Articles

William H. Beaver, Maureen McNichols, Karen K. Nelson. Review of Accounting Studies. 2007, Vol. 12, Issue 4, Pages 525-556.
William H. Beaver, Maureen McNichols, Richard Price. Journal of Accounting and Economics. 2007, Vol. 43, Issue 2–3, Pages 341-368.
Brad M. Barber, Reuven Lehavy , Maureen McNichols, Brett Trueman . Journal of Accounting and Economics. 2006, Vol. 41, Issue 1–2, Pages 87–117.
Patricia C. O'Brien, Maureen McNichols, Lin Hsiou-Wei. Journal of Accounting Research. 2005, Vol. 43, Issue 4, Pages 623-650.
William H. Beaver, Maureen McNichols, Jung-Wu Rhie. Review of Accounting Studies. 2005, Vol. 10, Issue 1, Pages 93-122.
William H. Beaver, Maureen McNichols, Karen K. Nelson . Journal of Accounting and Economics. 2003, Vol. 35, Issue 3, Pages 347–376.
Ron Kasznik, Maureen McNichols. Journal of Accounting Research. 2002, Vol. 40, Issue 3, Pages 727–759.
Mary E Barth, Ron Kasznik, Maureen McNichols. Journal of Accounting Research. 2001, Vol. 39, Issue 1, Pages 1–34.

Working Papers

Prophets and Losses: Reassessing the Returns to Analysts' Stock Recommendations | PDF
Maureen McNichols, Brad Barber, Reuven Lehavy, Brett Trueman2001
Analyst Coverage and Intangible Assets | PDF
Mary E Barth, Ron Kasznik, Maureen McNichols1999
Institutional Trading and Corporate Performance | PDF
Maureen McNichols, Mark Lang1997
Self-Selection and Analyst Coverage
Maureen McNichols, Patricia O'Brien1997
Factors Influencing Firms' Disclosures about Environmental Liabilities
Mary E Barth, Maureen McNichols, G. Wilson1996
Stock Dividends, Stock Splits and Signalling
Maureen McNichols, Ajay Dravid1987

Courses Taught

Degree Courses

2013-14

This Bass seminar is designed to develop students' ability to interpret and use financial accounting information in credit and equity valuation contexts. The course will focus on valuing the securities of companies undergoing significant changes...

This course aims to develop students' understanding of the relation between accounting numbers and underlying economic activity, and to develop students' ability to evaluate the quality of accounting numbers. The course will focus on several...

Empirical Research on Financial Reporting: This doctoral-level course covers research on the role of accounting information in capital markets. The focus is on introducing students to key themes in empirical accounting and capital markets...

2010-11

This course examines selected topics in accounting research. The course features four faculty who will each give a focused look at a given area, introduce students to important questions in that area, key papers in the related literature, and...

Stanford Case Studies

A209 | Tesla Motors Evaluating a Growth Company
Maureen McNichols, Anne Casscells, Jaclyn Foroughi2013
A203 | AIG - Blame for the Bailout
Nathan Blair, Maureen McNichols2009
A201 | Fannie Mae - A Shaky Foundation
Nathan Blair, Maureen McNichols2009
A202 | Tyco - M&A Machine
Nathan Blair, Maureen McNichols2009
A194 | AMB Property Corporation, Financial Reporting in the REIT Industry
Maureen McNichols, Brian Tayan2007
A193 | Earnings Conference Calls, Hewlett-Packard Company
Maureen McNichols, Brian Tayan2007
A187 | Halliburton Company, Accounting for Cost Overruns and Recoveries
Maureen McNichols, Brian Tayan2007
A195 | The Walt Disney Company: Investor Communications Strategy
Maureen McNichols, Brian Tayan2007
A189A | Sunbeam Corporation, Board Member Assessing Earnings Quality (A)
Colm Callan, Maureen McNichols2004
A186A | Costco Wholesale Corporation Financial Statement Analysis (A)
Maureen McNichols, Brian Tayan2003
A186B | Costco Wholesale Corporation Financial Statement Analysis (B)
Maureen McNichols, Brian Tayan2003
SI8 | SCORE Community Ventures
Maureen McNichols, James Wilcox2001

Stanford University Affiliations

Greater Stanford University

  • Affiliation commas wrapper

    Member, Provost's Budget Group, 2006-present
  • Affiliation commas wrapper

    Member, Finance Committee, Board of Trustees, 2004-2008

Service to the Profession

  • Editor, Review of Accounting Studies, 1995-2008
  • Editorial Board, The Accounting Review
  • Director and member of audit and compensation committees, NetIQ, 2003-2006

In the Media

New York Times, June 24, 2009
AP Online, November 5, 2004
How Analysts Operate
Newark Star-Ledger, June 2002
InvestmentNews, August 23, 2001