Steven J. Huddart

Color portrait of Steven J. Huddart

Professor, Senior Associate Dean

Department Accounting
Office Address 210E Business Building
Phone Number 814-865-3271
Email Address

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Steven Huddart is the Senior Associate Dean for Research and Faculty in the Smeal College of Business at the Penn State. From 2011 to 2018, he served as the Accounting Department Chair.

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). Previously he 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.


stock-based compensation. insider trading.


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

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,
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,
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, 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,
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,
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,
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,
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,
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,
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,
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,
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,
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,
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,
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,
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,
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,
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,
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,
Huddart S. J., "Patterns of stock option exercise in the United States." (Springer), 1999, pp. 115–142,
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,
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,
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,
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,
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,
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,
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,
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,


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