Kai Du

Color portrait of Kai Du

Assistant Professor

Department Accounting

Email Address kxd30@psu.edu

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Kai Du is an Assistant Professor at Penn State University. His research focuses on financial accounting, disclosure, and information economics. His research appears in academic journals such as The Accounting Review, Auditing: A Journal of Practice and Theory, Contemporary Accounting Research, Journal of Accounting and Economics, Journal of Economic Dynamics and Control, and Review of Accounting Studies.

Before joining Penn State, Kai received a PhD in Accounting from Yale University, where he was a Deloitte Foundation Doctoral Fellow and a Harry and Heesun You Fellow. He was also a Financial Accounting Standards Board (FASB) Faculty Fellow.

Kai is currently on leave to serve as the 2019–2020 Academic Fellow in the Office of the Chief Accountant at the U.S. Securities and Exchange Commission (SEC).

Expertise

Kai's research on accounting quality provides theoretical frameworks for understanding the empirical relationships between accounting information and economic fundamentals. His recent research also examines the economic forces underlying the reporting decisions of corporate managers and the informational choices of investors.

Education

Ph D, Accounting, Yale University, 2012

M Phil, Accounting, Yale University, 2010

MA, Accounting, Yale University, 2010

MA, Economics, Georgetown University, 2007

BA, Finance, Peking University, 2004

Courses Taught

ACCTG 471 – Int Fin Acctg I (3)
Theory and practice issues in income concepts and value measurement; GAAP; revenues, costs, assets, liabilities, and equities. ACCTG 471 Intermediate Accounting I (3) This course provides students with an understanding of generally accepted accounting principles and procedures so that they properly account for and present information in financial statements prepared for external users. The student should acquire a complete understanding of the accounting issues relating to cash, receivables, inventory, plant assets, natural resources, and intangibles. The student should be able to evaluate alternative accounting methods and choose the methods which will best convey the financial information related to the above areas. The student should be able to apply appropriate generally accepted accounting principles and procedures to account for transactions related to the above asset areas. The student should be able to demonstrate an understanding of the transaction analysis, recording, classification, summarization, and reporting procedures in the accounting cycle, and an understanding of the information contained in the financial statements. Finally, student should be able to demonstrate written communication skills required of accountants.

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

Selected Publications

Chen Y., Du K., "The Role of Information Disclosure in Financial Intermediation with Investment Risk." Journal of Financial Stability, 2019, doi.org/10.1016/j.jfs.2019.100720
Du K., "Investor Expectations, Earnings Management, and Asset Prices." Journal of Economic Dynamics & Control, vol. 105, 2019, pp. 134-157, doi.org/10.1016/j.jedc.2019.06.002
Du K., Wu S., "Does External Assurance Enhance the Credibility of CSR Reports? Evidence from CSR-related Misconduct Events in Taiwan." Auditing: A Journal of Practice & Theory, vol. 38, 2019, pp. 101-130, aaapubs.org/doi/abs/10.2308/ajpt-52418
Du K., Zhang F., "Orphans Deserve Attention: Financial Reporting in the Missing Months When Corporations Change Fiscal Year." The Accounting Review, vol. 88, no. 3, 2013, pp. 945-975, aaapubs.org/doi/abs/10.2308/accr-50364
Du K., Huddart S. J., Xue L., Zhang Y., "Using a Hidden Markov Model to Measure Earnings Quality." Journal of Accounting and Economics, sites.psu.edu/fidelity/
Du K., Jiang X. D., "Connections between the Market Pricing of Accruals Quality and Accounting-based Anomalies." Contemporary Accounting Research, doi.org/10.1111/1911-3846.12589
Du K., Huddart S. J., "Economic Persistence, Earnings Informativeness, and Stock Return Regularities." Review of Accounting Studies, papers.ssrn.com/sol3/papers.cfm?abstract_id=2959052

Research Impact and Media Mentions

"CSR reports are superfluous unless accompanied by third-party assurance", ESG Insight, Web
"Hiding Losses, Via the Calendar", New York Times, Newspaper