Judson Caskey

Profile photo of Judson Caskey
“Capital markets represent one of the primary uses of accounting information. This brings up a host of interesting issues, such as contracting with lenders, how managers decide to report information, and how investors use accounting when valuing companies.”
 

Associate Professor

Areas of Expertise

  • Accounting-based valuation
  • Contracting
  • Earnings management
  • Securities Fraud

About

 

Biography

Associate Professor of Accounting Judson Caskey focuses on both empirical and modeling research in financial accounting, specifically on the role of accounting disclosures within the context of informed decision making. His work includes analyzing the content of accounting disclosures and how that content is processed. His empirical research examines the information conveyed by financial reports and how investors use it.

He began his academic career at UCLA Anderson, spent three years at the University of Texas’ McCombs School of Business, and then returned to Anderson. What he likes most about UCLA is that “the people are very smart, very curious and very willing to engage in the exchange of ideas, which provides support for my own work and as well as an ability to support others, whether it be faculty or students. That type of cooperation is an inherent part of the UCLA Anderson culture.”

While Caskey considers himself primarily a researcher, he enjoys both research and teaching, and the novelty that they provide. “Novelty in research stems from working on different projects, while novelty in teaching stems from working with different students, different courses, and developments in accounting. The interaction with students is intrinsically rewarding and allows me to contribute to society by helping students develop business skills.”

His current projects range from showing the correlation between meeting earnings targets and a company’s potential to compromise on employee safety to how individual firms’ accounting policies should not affect their cost of capital. “The latter is important because that implies companies can focus their accounting on issues with investors and managers, such as contracting,” he explains.

When not on campus, Caskey can be found hiking, camping, cycling or reading novels.

 

Courses

First-year financial accounting for FEMBA

 

Education

Ph.D.  Business Administration, 2006, University of Michigan

MBA with High Distinction, 2002, University of Michigan

B.A. Accounting with High Honors, 1995, Michigan State University

 

Published Papers

Judson Caskey and Volker Laux. (Forthcoming). Corporate governance, accounting conservatism, and manipulation. Management Science.

Judson Caskey, John Hughes, and Jun Liu. (2015). Strategic informed trades, diversification, and expected returns. The Accounting Review, 90(5): 1811-1837. [ Link ]

Judson Caskey. (2014). The pricing effects of securities class action lawsuits and litigation insurance. Journal of Law, Economics and Organization, 30(3): 493-532. [ Link ]

Daniel Aobdia, Judson Caskey, and N. Bugra Ozel. (2014). Inter-industry network structure and the cross-predictability of earnings and stock returns. Review of Accounting Studies, 19(3): 1191-1224. [ Link ]

Judson Caskey and Kyle Peterson. (2014). Conservatism measures that remove the effects of asset composition. Review of Quantitative Finance and Accounting, 42(4): 731-756. [ Link ]

Judson Caskey and Michelle Hanlon. (2013). Dividend policy at firms accused of accounting fraud. Contemporary Accounting Research, 30(2): 818-850.[ Link ]

Judson Caskey, John Hughes, and Jing Liu. (2012). Leverage, excess leverage and future stock returns. Review of Accounting Studies, 17(2): 443-471. [ Link ]

Judson Caskey and John Hughes. (2012). Assessing the impact of alternative fair value measures on the efficiency of project selection and continuation. The Accounting Review, 87(2):483-512. [ Link ]

Judson Caskey, Venky Nagar, and Paolo Petacchi. (2010). Reporting Bias with an Audit Committee. The Accounting Review, 85(2): 477-481. [ Link ]

Judson Caskey, Information in equity markets with ambiguity averse investors 2009, Review of Financial Studies 22(9): 3595-3627 ( Abstract, PDF) [ Link ]

 

Media Coverage

Bloomberg BNA, Feb. 13, 2015
Investopedia (http://bit.ly/1IOzmQN)

Study Links Ambiguity-Aversion with Stock Mispricing,” UCLA Anderson blog.

 

Recognition

Zephyr Price for best corporate finance paper (2014)
Review of Accounting Studies/Morgan Stanley best discussant award (2014)
PwC endowed faculty fellowship (2013–2014)
Deloitte Doctoral Fellowship (2005)

 

Video

Study Examines Effect of Investor Relations on Market Information
Under-Levered Firms Earn Better Returns