Steven J. Huddart

Color portrait of Steven J. Huddart

Smeal Chair Professor Accounting, Senior Associate Dean

Department Accounting
Office Address 210E Business Building
Phone Number 814-865-3271
Email Address huddart@psu.edu

Download Photo Download Vita Google Scholar


Steven Huddart is the Smeal Chair Professor of Accounting and the Senior Associate Dean for Research and Faculty. From 2011 to 2018, he served as the Accounting Department Head.

Professor Huddart's research examines how decisions are affected by information, incentives, social norms, and behavioral biases. He has examined the relationships between disclosure and insider trading; the financial reporting, taxation, compensation, and valuation aspects of employee stock options; the effects of ownership structure on corporate value; the determinants of investors' decisions to trade; and measures of quality for financial statement data.

He has taught financial accounting, managerial accounting, and tax planning. Professor Huddart has published cases on indirect cost allocation and the taxation of a corporate acquisition. Before coming to Smeal, he taught at Duke, Michigan, and Stanford.

He is a Chartered Professional Accountant (Canada). He has served as an editor of Contemporary Accounting Research and The Accounting Review, and on the editorial boards of Contemporary Accounting Research, the Journal of Accounting & Economics, the Review of Accounting Studies, and the Journal of Accounting Case Research.

Expertise

stock-based compensation. insider trading.

Education

Ph D, Yale University, 1991

M Phil, Yale University, 1988

MA, Yale University, 1988

BMath, The University of Waterloo, 1985

Courses Taught

ACCTG 597 – Special Topics (4)
Formal courses given on a topical or special interest subject which may be offered infrequently; several different topics may be taught in one year or term.

ACCTG 404 – Managerial Accounting: Economic Perspective (3)
Accounting techniques as planning, control, and motivating devices in business and other organizations; accounting data for decision making and performance evaluation.

ACCTG 597E – Analytical Modeling (4)
Seminar on anaytical modeling in accounting.

B A 521 – Introduction to Managerial Accounting (2)
Cost accounting and the design of management accounting systems for planning and controlling operations, and for motivating personnel.

ACCTG 211 – Financial and Managerial Accounting for Decision Making (4)
Introduction to the role of accounting numbers in the process of managing a business and in investor decision making.

ACCTG 590 – Colloquium (variable)
Continuing seminars which consist of a series of individual lectures by faculty, students, or outside speakers.

ACCTG 596 – Individual Studies (variable)
Creative projects, including nonthesis research, which are supervised on an individual basis and which fall outside the scope of formal courses.

ACCTG 550 – Taxation and Management Decisions (2)
Framework for understanding the effects of taxes on business decisions and fordevising effective tax planning strategies.

B A 574 – Business Research (variable)
A project paper, comparable in quality and scope of work to a graduate thesis, on problems of a company.

Selected Publications

Huddart S. J., Qu H., "Rotten Apples and Sterling Examples: Norm-Based Moral Reasoning and Peer Influences on Honesty." Journal of Management Accounting Research, vol. 36, no. 2, 2024, pp. 18, publications.aaahq.org/jmar/article-abstract/36/2/123/12143/Rotten-Apples-and-Sterling-Examples-Norm-Based
Du K., Huddart S. J., Jiang X. D., "Lost in Standardization: Effects of Financial Statement Database Discrepancies on Inference." Journal of Accounting & Economics, vol. 76, no. 1, 2023, pp. 28, www.sciencedirect.com/science/article/pii/S0165410122000969
Hofmann C., Huddart S. J., Pfeiffer T., "An analysis of net-outcome contracting with applications to equity-based compensation." Review of Accounting Studies, vol. 28, no. 3, 2022, pp. 33, link.springer.com/article/10.1007/s11142-021-09666-w
Du K., Huddart S. J., Xue L., Zhang Y., "Using a Hidden Markov Model to Measure Earnings Quality." Journal of Accounting & Economics, vol. 69, 2020, pp. 27, doi:10.1016/j.jacceco.2019.101281, www.sciencedirect.com/science/article/abs/pii/S016541011930076X
https://sites.psu.edu/fidelity/ contains information on our theoretical model, estimation method, data, and programs for the MCMC algorithm that you can adopt to estimate other constructs.
Du K., Huddart S. J., "Economic persistence, earnings informativeness, and stock return regularities." Review of Accounting Studies, 2020, doi:10.1007/s11142-020-09531-2, link.springer.com/article/10.1007/s11142-020-09531-2
Huddart S. J., Yavas A., "The efficiency of stock-based incentives: experimental evidence." Journal of Behavioral Finance, vol. 18, no. 3, 2017, pp. 281-303, doi:10.1080/15427560.2017.1340293, www.tandfonline.com/doi/full/10.1080/15427560.2017.1340293
Huddart S. J., "Discussion of "The Effects of Vertical Pay Dispersion: Experimental Evidence in a Budget Setting"." Contemporary Accounting Research, vol. 34, no. 1, 2017, pp. 577-581, doi:10.1111/1911-3846.12248, onlinelibrary.wiley.com/doi/full/10.1111/1911-3846.12248
Huddart S. J., "Discussion of "Empirical Evidence on the Implicit Determinants of Compensation in Big 4 Audit Partnerships"." Journal of Accounting Research, vol. 51, no. 2, 2013, pp. 389-397, doi:10.1111/joar.12010, www.jstor.org/stable/23473526
Bozanic Z., Dirsmith M. W., Huddart S. J., "The social constitution of regulation: The endogenization of insider trading laws." Accounting, Organizations & Society, vol. 37, no. 7, 2012, pp. 461-481, doi:10.1016/j.aos.2012.06.003, www.sciencedirect.com/science/article/pii/S0361368212000670
Huddart S. J., Lang M., Yetman M. H., "Volume and Price Patterns Around a Stock's 52-Week Highs and Lows: Theory and Evidence." Management Science, vol. 55, no. 1, 2009, pp. 16-31, doi:10.1287/mnsc.1080.0920, pubsonline.informs.org/doi/10.1287/mnsc.1080.0920
Fischer P., Huddart S. J., "Optimal Contracting with Endogenous Social Norms." American Economic Review, vol. 98, no. 4, 2008, pp. 1459-1475, doi:10.1257/aer.98.4.1459, www.aeaweb.org/articles?id=10.1257/aer.98.4.1459
2004-2005 winner of the McLaughlin Prize for Ethics in Accounting Research
Huddart S. J., "Three Patterns in Need of a Unified Theory." Accounting Horizons, vol. 22, no. 4, 2008, pp. 441-444, doi:10.2308/acch.2008.22.4.441, aaajournals.org/doi/abs/10.2308/acch.2008.22.4.441
Huddart S. J., Ke B., "Information asymmetry and cross-sectional variation in insider trading." Contemporary Accounting Research, vol. 24, no. 1, 2007, pp. 195–232, doi:10.1506/0277-1110-4434-M627, onlinelibrary.wiley.com/doi/10.1506/0277-1110-4434-M627
Huddart S. J., Ke B., Shi C., "Jeopardy, non-public information, and insider trading around SEC 10-K and 10-Q filings." Journal of Accounting & Economics, vol. 43, no. 1, 2007, pp. 3-36, doi:10.1016/j.jacceco.2006.06.003, www.sciencedirect.com/science/article/pii/S016541010600070X
Huddart S. J., Liang P. J., "Profit sharing and monitoring in partnerships." Journal of Accounting & Economics, vol. 40, no. 1, 2005, pp. 153–187, doi:10.1016/j.jacceco.2005.04.008, www.sciencedirect.com/science/article/pii/S0165410105000613
Huddart S. J., Liang P. J., "Accounting in partnerships." The American Economic Review, vol. 93, no. 2, 2003, pp. 410–414, doi:10.1257/000282803321947434, www.aeaweb.org/articles?id=10.1257/000282803321947434
Huddart S. J., Lang M., "Information distribution within firms: evidence from stock option exercises." Journal of Accounting & Economics, vol. 34, no. 1, 2003, pp. 3–31, doi:10.1016/S0165-4101(02)00071-X, www.sciencedirect.com/science/article/pii/S016541010200071X
Ke B., Petroni K., Huddart S. J., "What Insiders Know About Future Earnings and How They Use It: Evidence from Insider Trades." Journal of Accounting & Economics, vol. 35, no. 3, 2003, pp. 315-346, doi:10.1016/S0165-4101(03)00036-3, www.sciencedirect.com/science/article/pii/S0165410103000363
Huddart S. J., Narayanan V., "An empirical examination of tax factors and mutual funds’ stock sales decisions." Review of Accounting Studies, vol. 7, no. 2, 2002, pp. 319–341, doi:10.1023/A:1020250708495, link.springer.com/article/10.1023/A%3A1020250708495
Huddart S. J., Hughes J. S., Levine C. B., "Public disclosure and dissimulation of insider trades." Econometrica, vol. 69, no. 3, 2001, pp. 665–681, doi:10.1111/1468-0262.00209, onlinelibrary.wiley.com/doi/pdf/10.1111/1468-0262.00209
Huddart S. J., "Patterns of stock option exercise in the United States." (Springer), 1999, pp. 115–142, www.springer.com/us/book/9780792381792
The New York University Salomon Center Series on Financial Markets and Institution
Huddart S. J., Hughes J. S., Brunnermeier M., "Disclosure requirements and stock exchange listing choice in an international context." Journal of Accounting & Economics, vol. 26, no. 1, 1999, pp. 237–269, doi:10.1016/S0165-4101(98)00034-2, www.sciencedirect.com/science/article/pii/S0165410198000342
Heath C., Huddart S. J., Lang M., "Psychological factors and stock option exercise." The Quarterly Journal of Economics, vol. 114, no. 2, 1999, pp. 601–627, doi:10.1162/003355399556089, academic.oup.com/qje/article/114/2/601/1844236
Huddart S. J., "Reputation and performance fee effects on portfolio choice by investment advisers." Journal of Financial Markets, vol. 2, no. 3, 1999, pp. 227–271, doi:10.1016/S1386-4181(98)00013-5, www.sciencedirect.com/science/article/pii/S1386418198000135
Saly P. J., Jagannathan R., Huddart S. J., "Valuing the reload features of executive stock options." Accounting Horizons, vol. 13, no. 3, 1999, pp. 219–240, doi:10.2308/acch.1999.13.3.219, aaajournals.org/doi/abs/10.2308/acch.1999.13.3.219
Huddart S. J., "Tax planning and the exercise of employee stock options." Contemporary Accounting Research, vol. 15, no. 2, 1998, pp. 203–216, doi:10.1111/j.1911-3846.1998.tb00556.x, onlinelibrary.wiley.com/doi/10.1111/j.1911-3846.1998.tb00556.x
Huddart S. J., Lang M., "Employee stock option exercises an empirical analysis." Journal of Accounting & Economics, vol. 21, no. 1, 1996, pp. 5 - 43, doi:10.1016/0165-4101(95)00409-2, www.sciencedirect.com/science/article/pii/0165410195004092
Huddart S. J., "Employee stock options." Journal of Accounting & Economics, vol. 18, no. 2, 1994, pp. 207–231, doi:10.1016/0165-4101(94)00363-7, www.sciencedirect.com/science/article/pii/0165410194003637
Huddart S. J., "The effect of a large shareholder on corporate value." Management Science, vol. 39, no. 11, 1993, pp. 1407–1421, doi:10.1287/mnsc.39.11.1407, pubsonline.informs.org/doi/10.1287/mnsc.39.11.1407

Editorships

Contemporary Accounting Research, Editor, January 2012 - January 2017
Contemporary Accounting Research, Editorial Board, January 2008 - January 2012
The Accounting Review, Editor, January 2005 - January 2008
Journal of Accounting Case Research, January 1999 - January 2005
Journal of Accounting & Economics, Associate Editor, January 1997 - January 2014
Review of Accounting Studies, Editorial Board, January 1996 - January 1999

Honors and Awards

Fellow, Academic Leadership Program, Big Ten Academic Alliance, (Sep 1, 2018)
Glen McLaughlin Prize for Research in Accounting Ethics, University of Oklahoma, (Dec 31, 2005)
Best paper award, Journal of Accounting & Economics Conference on Accounting and Economics in the New Economy, Journal of Accounting & Economics, (Dec 31, 2001)