You are here

Faculty & Research › Faculty › David F. Larcker

David F. Larcker
David F. Larcker
Professor, Accounting
Contact Info
+1 (650) 725-6159
Email
Personal Website
Google Scholar
LinkedIn
Twitter
DavidF.Larcker
James Irvin Miller Professor of Accounting
Professor of Law (by courtesy), Stanford Law School
Senior Faculty of the Arthur and Toni Rembe Rock Center for Corporate Governance at Stanford
Academic Area: 
Accounting
Additional Administrative Titles
Director, Directors' Consortium Executive Program

Research Statement

Professor Larcker’s research focuses on executive compensation, corporate governance, and managerial accounting. His work examines the choice of performance measures and compensation contracts in organizations. He has current research projects on the valuation implications of corporate governance, the impact of proxy advisory firms on shareholder proxy voting and modeling the cost of executive stock options.

Bio

Professor Larcker presently holds the James Irvin Miller Professorship. He is the director of the Corporate Governance Research Initiative at the Stanford Graduate School of Business and senior faculty of the Arthur and Toni Rembe Rock Center for Corporate Governance at Stanford University. Professor Larcker was previously the Ernst & Young Professor of accounting at the Wharton School of the University of Pennsylvania and Professor of accounting and information systems at the Kellogg Graduate School of Management at Northwestern University. He received his PhD in Business from the University of Kansas and his BS and MS in Engineering from the University of Missouri- Rolla.

He is on the editorial boards of the Journal of Accounting and Economics, Journal of Accounting Research, Accounting, Organizations and Society, Journal of Accounting and Public Policy, Journal of Applied Corporate Finance. Professor Larcker received the Notable Contribution to Managerial Accounting Research in 2001.

Academic Degrees

  • PhD, University of Kansas, 1978
  • MS, University of Missouri-Rolla, 1974
  • BS, University of Missouri-Rolla, 1972

Academic Appointments

  • At Stanford University since 2005
  • Ernst & Young Professor of Accounting, The Wharton School, University of Pennsylvania, 1985-2005
  • Assistant Professor - Professor, J.L. Kellogg Graduate School of Management, Northwestern University, 1978-1985

Awards and Honors

  • Winnick Family Faculty Fellow, Stanford GSB, 2013-2014
  • Notable Contribution to Managerial Accounting Research, 2001
  • PhD Faculty Distinguished Service Award, Stanford GSB, 2010

Publications

Journal Articles

Corporate Governance, Incentives, and Tax Avoidance
Christopher S. Armstrong, Jennifer L. Blouina, Alan D. Jagolinzer, David F. Larcker. Journal of Accounting and Economics. August 2015, Vol. 60, Issue 1, Pages 1 – 17.
Outsourcing Shareholder Voting to Proxy Advisory Firms
David F. Larcker, Allan L. McCall, Gaizka Ormazabal. Journal of Law and Economics. February 2015, Vol. 58, Issue 1, Pages 173-204.
The Efficacy of Shareholder Voting: Evidence from Equity Compensation Plans
Christopher S. Armstrong, Ian D. Gow, David F. Larcker. Journal of Accounting Research. December 2013, Vol. 51, Issue 5, Pages 909-950.
Proxy Advisory Firms and Stock Option Repricing
David F. Larcker, Allan L. McCall, Gaizka Ormazabal. Journal of Accounting and Economics. November 2013, Vol. 56, Issue 2–3, Pages 149–169.
The Relation between Equity Incentives and Misreporting: The Role of Risk-Taking Incentives
Christopher S. Armstrong, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor. Journal of Financial Economics. August 2013, Vol. 109 , Issue 2, Pages 327–350.
Boardroom Centrality and Firm Performance
David F. Larcker, Eric C. So, Charles C.Y. Wang. Journal of Accounting & Economics. April 2013, Vol. 55, Issue 2–3, Pages 225–250.
Corporate Governance, Compensation Consultants, and CEO Pay Levels
Christopher S. Armstrong, Christopher D. Ittner, David F. Larcker. Review of Accounting Studies. June 2012, Vol. 17, Issue 2, Pages 322–351.
Detecting Deceptive Discussions in Conference Calls
David F. Larcker, Anastasia A. Zakolyukina. Journal of Accounting Research. May 2012, Vol. 50, Issue 2, Pages 495–540.
Corporate Governance and the Information Content of Insider Trades
Alan D. Jagolinzer, David F. Larcker, Daniel J. Taylor. Journal of Accounting Research. December 2011, Vol. 49, Issue 5, Pages 1249–1274.
The Market Reaction to Corporate Governance Regulation
David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor. Journal of Financial Economics. August 2011, Vol. 101, Issue 2, Pages 431-448.
The Incentive for Tax Planning
Chris Armstrong, Jennifer L. Blouin, David F. Larcker. Journal of Accounting and Economics. 2011, Vol. 53, Issue 1–2, Pages 391-411.
Rating the Ratings: How Good Are Commercial Governance Ratings?
Robert Daines, Ian D. Gow, David F. Larcker. Journal of Financial Economics. December 2010, Vol. 98, Issue 3, Pages 439–461.
Endogenous Selection and Moral Hazard in Compensation Contracts
Christopher S. Armstrong, David F. Larcker, Che-Lin Su. Operations Research. July 2010, Vol. 58, Pages 1090–1106.
Chief Executive Officer Equity Incentives and Accounting Irregularities
Christopher S. Armstrong, Alan D. Jagolinzer, David F. Larcker. Journal of Accounting Research. May 2010, Vol. 48, Issue 2, Pages 225-271.
On the Use of Instrumental Variables in Accounting Research
David F. Larcker, Tjomme O. Rusticus. Journal of Accounting Research. April 2010, Vol. 49, Issue 3, Pages 186–205.
The Stock Market's Pricing of Customer Satisfaction
Christopher Ittner, David F. Larcker, Daniel Taylor. Marketing Science. September 2009, Vol. 28, Issue 5, Pages 825–835.
Discussion of “The Impact of the Options Backdating Scandal on Shareholders” and “Taxes and the Backdating of Stock Option Exercise Dates”
Christopher S. Armstrong, David F. Larcker. Journal of Accounting and Economics. March 2009, Vol. 47, Issue 1–2, Pages 50–58.
The Power of the Pen and Executive Compensation
John E. Core, Wayne Guay, David F. Larcker. Journal of Financial Economics. April 2008, Vol. 88, Issue 1, Pages 1–25.
Perfomance-Based Compensation in Professional Service Firms: An Examination of Medical Group Practices
Christopher D. Ittner, David F. Larcker, Mina Pizzini. Journal of Accounting and Economics. December 2007, Vol. 44, Issue 3, Pages 300–327.
Corporate Governance, Accounting Outcomes and Organizational Performance
David F. Larcker, Scott A. Richardson, Irem Tuna. The Accounting Review. July 2007, Vol. 82, Issue 4, Pages 963–1008.
Endogeneity and Empirical Accounting Research
David F. Larcker, Tjomme O. Rusticus. European Accounting Review. May 2007, Vol. 16, Issue 1, Pages 207–215.
The Structure of Performance-Based Stock Option Grants
Joseph J. Gerakos, Christopher D. Ittner, David F. Larcker. Essays in Accounting Theory in Honour of Joel S. Demski. Springer, 2007, Pages 227–229.
Fees Paid to Audit Firms, Accrual Choices, and Corporate Governance
David F. Larcker, Scott A. Richardson. Journal of Accounting Research. June 2004, Vol. 42, Issue 3, Pages 625–658.
Performance Implications of Strategic Performance Measurement in Financial Service
Christopher D Ittner, David F. Larcker, Taylor Randall. Accounting, Organizations and Society. October 2003, Vol. 28, Issue 7–8, Pages 715–741.
The Structure and Performance Consequences of Equity Grants to Employees of New Economy Firms
Christopher D. Ittner, Richard A. Lambert, David F. Larcker. Journal of Accounting and Economics. January 2003, Vol. 34, Issue 1-3, Pages 89–127.

Books

Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (2nd edition)
David F. Larcker, Brian Tayan Pearson FT Press, July 31, 2015.
A Real Look at Real World Corporate Governance
David F. Larcker, Brian Tayan Larcker and Tayan, August 29, 2013.
Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences
David F. Larcker, Brian Tayan FT Press, April 14, 2011.

Working Papers

CEO Pay, Performance, and Value Sharing | PDF
David F. Larcker, Nicholas E. Donatiello, Brian Tayan, March 32016
Causal Inference in Accounting Research | PDF
Ian D. Gow, David F. Larcker, Peter C. Reiss, February 82016
Corporate Governance Data and Measures Revisited | PDF
David F. Larcker, Peter C. Reiss, Youfei Xiao, November 12015
The Information Content of Insider Trades around Government Intervention during the Financial Crisis | PDF
Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor, August 142014
An Exploratory Investigation of the Determinants and Ratings Implications of Performance Appraisal Plan Characteristics | PDF
Christopher S. Armstrong, Christopher D. Ittner, David F. Larcker, April 172014
Risk-Taking Incentives in Bank Holding Companies and the Financial Crisis
David F. Larcker, G. Ormazabal, D.J. Taylor2013

Courses Taught

Degree Courses

2015-16

ACCT 317: Managerial Accounting: Performance Measurement, Compensation, and Governance

The course will examine the academic and professional controversies surrounding corporate governance and executive compensation. A basic framework will be developed to integrate the many important dimensions of corporate governance in the U.S....

ACCT 523: Board Governance

This course is focused on helping students understand the role boards and board members play in corporate governance and the lives of businesses large and small. This case-driven course is designed to help students who plan to serve on boards as...

2014-15

ACCT 317: Managerial Accounting: Performance Measurement, Compensation, and Governance

The course will examine the academic and professional controversies surrounding corporate governance and executive compensation. A basic framework will be developed to integrate the many important dimensions of corporate governance in the U.S....

ACCT 523: Board Governance

This course is focused on helping students understand the role boards and board members play in corporate governance and the lives of businesses large and small. This case-driven course is designed to help students who plan to serve on boards as...

ACCT 615: Selected Topics in Empirical Accounting Research

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...

Programs and Non-Degree Courses

Stanford Case Studies

Keller Williams Realty (B) | HR29B
James Baron, David Larcker, Brian Tayan2011
Baker Hughes, Foreign Corrupt Practices Act | CG18
David Larcker, Brian Tayan2010
Equity on Demand, The Netflix Approach to Compensation | CG19
David Larcker, Allan McCall, Brian Tayan2010
Multimillionaire Matchmaker, An Inside Look At CEO Succession Planning | CG21
David Larcker, Brian Tayan2010
Sharks in the Water, Battling an Activist Investor for Corporate Control (A) | CG20A
David Larcker, Brian Tayan2010
Sharks in the Water, Battling an Activist Investor for Corporate Control (B) | CG20B
David Larcker, Brian Tayan2010
Royal Dutch/Shell, A Shell Game with Oil Reserves (A) | CG17A
David Larcker, Robert Lawson, Brian Tayan2009
Royal Dutch/Shell, A Shell Game with Oil Reserves - Governance Overhaul After Scandal (B) | CG17B
David Larcker, Robert Lawson, Brian Tayan2009
Selecting a CEO, The Leader, The Business Builder, or the Technologist | CG15
David Larcker, Brian Tayan2009
The Management of Berkshire Hathaway | CG16
David Larcker, Brian Tayan2009
Attention Shoppers, Executive Compensation at Kroger, Safeway, Costco and Whole Foods | CG13
David Larcker, Brian Tayan2008
Executive Compensation at Aquila, Moving Utility Services to Power Trading | CG14
David Larcker, Brian Tayan2008
Models of Corporate Governance. Who's the Fairest of Them All? | CG11
David Larcker, Brian Tayan2008
Say on Pay, Does the Buck Stop Here? | CG12
David Larcker, Brian Tayan2008
10b5-1 Plans, Mortgaging a Defense Against Insider Trading | CG10
David Larcker, Brian Tayan2007
Corporate Governance Ratings, Got the grade… What was the test? | CG08
David Larcker, Brian Tayan2007
Executive Compensation at Nabors Industries, Too Much, Too Little, or Just Right? | CG5
David Larcker, Brian Tayan2007
Shareholder Democracy, Does Gretchen Get It Right? | CG09
David Larcker, Brian Tayan2007
Sovereign Bancorp and Relational Investors, The Role of the Activist Hedge Fund | CG06
David Larcker, Brian Tayan2007
There's a New Sheriff in Town, Institutional Shareholder Services | CG07
David Larcker, Brian Tayan2007

Stanford University Affiliations

Stanford GSB

Service to the Profession

Member

  • Accounting, Organization and Society, 1996-present
  • American Accounting Association
  • Journal of Accounting and Public Policy, 2002-present

Advisory Board

  • Journal of Applied Corporate Finance, 2004-present

Corporate Governance

  • Internal Governance, Organization, & Processes Abstracts Advisory Board
  • Corporate Governance Network, SSRN, 2009-present

In the Media

Sharing the news when a CEO gets sick
Washington Post, July 3, 2014
Has Coca-Cola Forged a New Path in Executive Pay?
Bloomberg TV, June 18, 2014
Riches for Regeneron Pharmaceuticals
Crain's New York Business, June 15, 2014
Add COOs to the Endangered Species List
The Wall Street Journal, June 13, 2014
Business jargon: Squaring the circle
BBC News, June 3, 2014
Long-Term Orientated Investors May Boost Performance [STUDY]
Value Walk, June 2, 2014
Rules shake-up and the law of unintended consequences
Financial Times, June 1, 2014
The Morning Risk Report: Firms See Value Opportunity in Shareholder Base
The Wall Street Journal, May 22, 2014
The Right Way to Pay
Forbes, June 11, 2009
More Outside Directors Taking Lead in Crises
Wall Street Journal, April 19, 2007
America's CEO Pay May Soon Face Squeeze
The Christian Science Monitor, February 4, 2007

Insights by Stanford Business

writtenAre CEOs Overpaid?
February 17, 2016
A new survey shows Americans find flaws with executive compensation.
writtenWho Runs Silicon Valley Boards?
January 27, 2016
It’s an insular group, but with a couple surprises.
writtenWhat Is It Like to Be Owned by Warren Buffett?
October 29, 2015
A new survey reveals Berkshire’s management style.
writtenSeven Myths of Boards of Directors
October 12, 2015
Should the chairman always be independent? Do CEOs actually make good directors?
writtenHow to Be a Better Nonprofit Board Member
July 10, 2015
Apply the fundamentals of corporate governance to charitable work.
writtenDavid Larcker: Nonprofit Boards Fall Short
April 22, 2015
A new survey shows many lack skills, engagement to effectively oversee organizations.
writtenEven the Experts are Dissatisfied with CEO Pay Disclosure
February 17, 2015
Investors say proxy statements are too long and too difficult to read.
writtenHow to Write the Ideal Proxy
February 17, 2015
Stanford scholars explain what investors need in order to understand companies’ annual statements.
infographicShould Your Board’s Audit and Compensation Committees Overlap?
January 23, 2015
Researchers show the pros and cons to this arrangement.
writtenThree Reasons Outgoing CEOs Shouldn’t Pick Their Replacements
November 20, 2014
Not every CEO can spot a winner. Here’s what a board should consider.
writtenResearchers: The Power of Proxy Advisory Firms
January 13, 2014
Two experts on corporate governance say the firms’ influence “may not be for the better, as far as shareholder value is concerned.”
writtenResearchers: Where Do You Draw the Line Between Trust and Regulation?
September 20, 2013
David Larcker and Brian Tayan explain why building trust in an organization pays off.
writtenDavid Larcker: “Lonely at the Top” Resonates for Most CEOs
July 31, 2013
Nearly two-thirds of CEOs do not receive outside leadership advice, but nearly all want it.
writtenDavid Larcker: Regulations Are No Quick Fix for Corporate Failures
July 24, 2013
In their latest book, corporate governance experts assess which governance practices really work.
writtenNew CEO and Board Research from Stanford and The Miles Group
May 22, 2013
In grading CEO performance, financials still dominate.
writtenDavid Larcker: Should the CEO Role Be Separated from the Chairman?
May 16, 2013
Whether shareholders benefit depends more on context than on corporate structure.
writtenThe Executive Social Media Gap
October 25, 2012
A new study reveals a disconnect between companies' understanding of social media and the actions they are taking to apply it to their business.
written7 Myths of Executive Compensation
June 1, 2011
Corporate governance experts from Stanford GSB say criticism of CEO pay might be off the mark.
writtenCorporate Governance Book Explores How Boards Can Govern Better
May 19, 2011
"Corporate Governance Matters" by Professor David Larcker and Brian Tayan provides a practical framework for organizational decisions.
writtenDavid Larcker: Is That CEO Telling the Truth?
August 1, 2010
Researchers find that speech patterns and words offer clues about whether an executive is being honest during a conference call.
writtenResearch: CEO Succession Planning Lags Badly
June 1, 2010
A new survey says more than half of companies today could not immediately name a successor to their CEO should the need arise.
writtenHow Good Are Commercial Corporate Governance Ratings?
September 1, 2009
Research casts doubt on the value and validity of the ratings of governance advisory firms.
writtenExcessive Executive Pay Makes Headlines, But So What?
April 1, 2008
A study shows that media clamor over high executive compensation makes virtually no difference in company behavior.

School News

written"Closer Look" Series Examines Hot Topics in Corporate Governance
July 1, 2011
Case studies explore governance challenges at top companies and myths surrounding board practices.
writtenNine New Faculty Members Welcomed
September 1, 2005
Three senior professors — in accounting, organizational behavior, and marketing — have joined the Stanford GSB faculty, along with six junior faculty.

Companies & Organizations

The Difference

Admission