Yongtao (David) Hong, PhD
Financial Accounting & Auditing Research
David Hong’s research explores the factors that may impact the quality of financial accounting information. These factors include earnings management incentives and techniques, managerial ability, business ethics, CEO compensation, and internal and external corporate governance structures. Given that auditors play a key role in assuring the quality of financials, Hong is interested in studying the relations between earnings management and auditor engagement. In addition, Hong examines how earnings quality affects capital market participants’ activities, such as analyst following. His work has been published in a number of accounting and business journals, such as Journal of Accounting and Public Policy, Financial Management, Journal of Business Ethics, etc.
Current research by Hong and his coauthors examines whether financial analysts distinguish between more conservative and more aggressive accounting environments in the context of banking industry. They develop a new model to test if lead analysts have different preference than followers. Using a quasi-experimental research design, Hong and his coauthor study whether a regulatory change motivates firms to make more investments in socially responsible activities, since a more socially responsible image helps firms to fight against short-selling activities and brings other economic benefits. Both of the above mentioned papers have been presented at American Accounting Association annual meetings. In another two papers, Hong and his coauthors examine the impact of corporate social responsibility on restatement severity and fair value evaluation of tangible and intangible assets acquired in mergers and acquisitions.
Dr. Hong’s work has been published in prestigious accounting, finance and business journals and presented at international, national and regional accounting and finance conferences. He won a best paper award at the 2011 New Orleans International Academic Conference. So far, his papers have received over 200 citations. He also serves as a peer-reviewer for a number of journals, including Journal of Business Ethics, Journal of Applied Accounting Research, Asian Review of Accounting, and Sustainability Accounting, Management and Policy Journal.