Teaching and Research Interests:

Professor Sadka’s research focuses on two areas — equity valuation, and the relation between financial reporting and product market competition. In his research on equity valuation, he examines the role of earnings in generating stock price volatility and the effects of marketwide liquidity shocks on the market’s response to earnings news. In his second area of research, he examines the effects of public sharing of financial statements on economic growth and productivity, and the implications of accounting fraud for firms’ behavior and consumer welfare. Prior to joining the PhD program at the University of Chicago, Sadka worked at the Israeli Accounting Standard Board. He teaches the core managerial accounting class.

Forthcoming and Published Papers:

Aggregate Earnings and Asset Prices, 2009, Journal of Accounting Research vol. 47, issue 5, pages 1097-1133 (with Ray Ball and Ronnie Sadka) Paper on SSRN

Liquidity and the Post-Earnings-Announcement Drift, 2009, Financial Analysts Journal Vol. 65 No. 4, 18-32 (with Tarun Chordia, Amit Goyal, Ronnie Sadka, and Lakshmanan Shivakumar) Paper on SSRN

Predictability and the Earnings-Returns Relation, 2009, Journal of Financial Economics Vol. 94, 87-106 (with Ronnie Sadka) Paper on SSRN

Is Financial Reporting Shaped by Equity Markets or by Debt Markets? An International Study of Timeliness and Conservatism, Review of Accounting Studies Volume 13 (2-3), 2008, 168-205 (With Ray Ball and Ashok Robin)

Understanding Stock-Price Volatility: The Role of Earnings, 2007, Journal of Accounting Research Vol. 48, No. 1, 199-228

The Economic Consequences of Accounting Fraud in Product Markets: Theory and a case from the US Telecommunication Industry (WorldCom), American Law and Economics Review Volume 8(3), 2006, 439-475

Working Papers:

Earnings Dispersion and Aggregate Stock Returns, 2009, Working Paper – Columbia University (with Bjorn Jorgensen and Jing Li)

Are Accounting Standards Diversifiable? Evidence of the Aggregate Valuation Effects of Standards, 2009, Working Paper – Columbia University (with Bjorn Jorgensen and Jing Li)

Capacity Utilization, Profit Margins and Stock Returns, 2009, Working Paper – Columbia University (with Bjorn Jorgensen and Jing Li)

Corporate Diversification and Overinvestment: Evidence from Asset Write-Offs, 2008, Working Paper – Columbia University (with Yuan Zhang)

Courses Taught:

Spring 2009
(PhD) Seminar Empirical Research
Performance Measurement

Spring 2008
(PhD) Seminar Empirical Research
Accounting II - Managerial

Spring 2007
Accounting II - Managerial

Summer 2006
Accounting II-Managerial

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