Teaching and Research Interests:

Professor Sadka joined UT Dallas in July 2014. Professor Sadka's research focuses primarily on equity valuation. In his research on equity valuation, he examines the role of earnings and earnings predictability in generating stock price volatility and the implications for asset prices. His studies explore issues related to aggregate (market-wide) earnings and aggregate stock price movement. Professor Sadka's research also focuses on the implications of accounting practice on contracting and other actions taken by firm managers as well as by their competitors. This line of research focuses on how earnings information is used by consumers of financial statements and how different demands shape accounting practice. Professor Sadka's research has been published in leading accounting and finance journals such as Journal of Accounting Research, Journal of Accounting and Economics, Review of Accounting Studies, American Law and Economics Review, and Journal of Financial Economics. Prior to joining UT Dallas, professor Sadka was an Associate Professor at Columbia Business School from 2005 until 2014. Prior to joining the PhD program at the University of Chicago, Professor Sadka has worked in the Israeli Accounting Standard Board. He earned his MBA and PhD from University of Chicago Booth School of Business in 2005.

Forthcoming and Published Papers:

Industry Sensitivity to External Forces, and the Industry-Level Information Advantage of Analysts Over Managers, 2023, Contemporary Accounting Research 40(2), 1107-1135 (with Ashiq Ali, Dan Amiram, and Alon Kalay)

The Inherent Conflict Between Progressive Tax Rates and Income Inequality: Lessons from COVID-19 Restrictions, 2022, Accounting and the Public Interest 22(1) 1-32 (with Nathan Goldman and Stephen Lusch)

Cross-Sectional Dispersion and Bank Performance, 2022, Journal of Banking and Finance 138 (with Xanthi Gkougkousi, Kose John, Suresh Radhakrishnan, and Anthony Saunder)

Using Accounting Earnings and Aggregate Supply and Demand Indicators to Estimate Firm-level Systematic Risk, 2022, Review of Accounting Studies 27(2) 607-646 (with Ray Ball and Ayung Tseng) (code) (data) (Appendix)

Complementarity between Audited Financial Reporting and Voluntary Disclosure: The Case of Former Andersen Clients, 2021, The Accounting Review 96(6), 215-238 (with Richard Frankel, Alon Kalay, and Yuan Zou) Appendix

State Contract Law and the Use of Accounting Information in Debt Contracts, 2021, Review of Accounting Studies 26, 124-171 (with with Colleen Honigsberg Sunay Mutlu, and Sharon Katz)

Illiquidity and Price Informativeness, 2020, Management Science 66 (1) 334-351 (with Jon Kerr and Ronnie Sadka) Appendix

Do debt covenants constrain borrowings prior to violation? Evidence from SFAS 160, 2019, The Accounting Review 94(2), 133-156 (with Moshe Cohen, Sharon Katz, and Sunay Mutlu)

Uncertainty and Sectoral Shifts: The Interaction between Firm-Level and Aggregate-Level Shocks, and Macroeconomic Activity, 2018, Management Science Vol. 64 (1) 198-214 (with Alon Kalay and Suresh Nallareddy) Data

Industry Characteristics, Risk Premiums, and Debt Pricing, 2017, The Accounting Review Vol. 92 (1), 1-27 (with Dan Amiram and Alon Kalay)

Expected Earnings, Earnings News, and Aggregate Stock Returns, 2016, Journal of Financial Markets Vol. 29, 110-143 (with Jung Ho Choi and Alon Kalay)

Aggregate Earnings and Why They Matter, 2015, Journal of Accounting Literature Vol. 34, 39-57 (with Ray Ball)

State Contract Law and Debt Contract, 2014, Journal of Law and Economics Vol. 57, 1031-1061 (with Colleen Honigsberg, and Sharon Katz)

Legal Environment and the Differential Performance of Publicly Traded and Privately Held Firms, 2012, International Journal of Finance Vol. 24, 7461-7500 (with Bjorn Jorgensen, Yaniv Konchitchki, and N. Bugra Ozel)

Earnings Dispersion and Aggregate Stock Returns, 2012, Journal of Accounting and Economics Vol. 53, 1-20 (with Bjorn Jorgensen and Jing Li)

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:

The Rising Importance of Aggregate Earnings for Firm Value, 2022, Working Paper – UT Dallas (with Ronnie Sadka, and Ayung Tseng)

Management Forecasting Behavior Following Public News Events, 2023, Working Paper – UT Dallas (with Gurvinder Sandhu and K. Sivaramakrishnan)

Courses Taught:

Columbia Business School

(PhD) Seminar Empirical Research

Earnings Quality and Fundamental Analysis

Performance Measurement

Accounting II - Managerial

University of Texas at Dallas

Financial Accounting (EMBA)

Accounting for Managers

Cost Management Systems

Managerial Accounting

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