Brett Trueman

Profile photo of Brett Trueman
"It's very satisfying to know that what I teach to my MBA students is immediately useful to them. I also enjoy helping doctoral students develop the ability to identify interesting and important research problems."
 

Professor of Accounting

Areas of Expertise

  • Behavior of Individual Investors
  • Earnings and Expectations Management
  • Financial Statement Analysis
  • Impact of Earnings on Stock Returns
  • Information Disclosures
  • Investor Sentiment
  • Performance of Security Analysts
  • Shareholder Litigation

About

 

Biography

Brett Trueman began his career at UCLA Anderson as an assistant professor in the accounting and finance areas, from 1981 through 1988, the last two years of which he served as area chair. He spent the ensuing 15 years at the Haas School of Business at UC Berkeley, where he was the chair of the accounting group for seven years. While at Haas, he established the Center for Financial Reporting and Management, was its first faculty director, and received an award for excellence in teaching in the MBA program and an Honorable Mention for Evening MBA teaching. He rejoined the UCLA Anderson faculty in 2003 and is currently chair of the accounting area here and serves on the University’s Council on Academic Personnel, a campus-wide committee that reviews cases for tenure and promotion.

Trueman works extensively with doctoral students. Students whose dissertation committees he has chaired have been placed at top schools, including Columbia University, Wharton, Yale, UC Berkeley, London Business School, University of Illinois at Urbana-Champaign and Southern Methodist University. Trueman won the Dean's Award for Exceptional Mentorship of Doctoral Students in 2015.

Trueman has published widely in accounting and finance journals. He is a member of the editorial boards of the Journal of Investment Management and the Journal of Accounting and Public Policy. He is a former associate editor of The Accounting Review and was previously on the editorial boards of the Financial Analysts Journal, Contemporary Accounting Research, and the Journal of Accounting, Auditing and Finance. He has also authored a financial accounting primer, a self-guided, interactive online course designed for incoming MBA students.

During his academic career, Trueman has also served as an expert witness on cases related to the quality of security analysts’ research reports and the valuation of high-tech companies. His expertise has been cited in national and international media, including the Associated Press, Business Week, the New York Times, CBS MarketWatch Fortune, Financial Times and the Wall Street Journal.

At UCLA Anderson, Trueman has taught the core financial accounting course to MBA and FEMBA students, as well as an elective in corporate finance reporting.

Trueman earned his Ph.D. in Finance in 1981, an MBA in Finance in 1977, an M.S. Industrial Engineering in 1976, and a B.S. Industrial Engineering, 1975 — all from Columbia University. His research interests include the performance of security analysts’ stock recommendations; the impact of earnings forecasts and earnings announcements on stock returns; earnings and expectations management; financial statement analysis; information disclosures; shareholder litigation; the behavior of individual investors; and investor sentiment.

 

Recognition

Earl F. Cheit Award in Teaching Excellence for outstanding MBA teaching at UC Berkeley

Honorable Mention for Evening MBA teaching at UC Berkeley

 

Education

Ph.D. Finance, 1981, Columbia University

MBA Finance, 1977, Columbia University

M.S. Industrial Engineering, 1976, Columbia University

B.S. Industrial Engineering, 1975, Columbia University

 

Courses

  • At the UCLA Anderson School, Professor Trueman has taught the core financial accounting course to MBA and FEMBA students, as well as an elective in corporate finance reporting.
 

Published Papers

Barber, B., E. DeGeorge, R. Lehavy, and B. Trueman,. (Forthcoming). The Earnings Announcement Premium Around the Globe. Journal of Financial Economics.

Aboody, D., R. Lehavy, and B. Trueman. (2010). Limited Attention and the Earnings Announcement Returns of Past Stock Market Winners. Review of Accounting Studies, 15, 317-344.

Barber, B., R. Lehavy, and B. Trueman. (2010). Ratings Changes, Ratings Levels, and the Predictive Value of Analysts' Recommendations. Financial Management, 39, pp. 533-553.

Barber, B., R. Lehavy, and B. Trueman. (2007). Comparing the Stock Recommendation Performance of Investment Banks and Independent Research Firms. Journal of Financial Economics, 85, pp. 490-517.

Barber, B., R. Lehavy, M. McNichols, and B. Trueman. (2006). Buys, Holds, and Sells: The Distribution of Investment Banks' Stock Ratings and the Implications for the Profitability of Analysts' Recommendations. Journal of Accounting and Economics, 41, 1-2, pp. 87-117.

Barber, B., R. Lehavy, M. McNichols, and B. Trueman. (2003). Reassessing the Returns to Analysts' Stock Recommendations. Financial Analysts Journal, 59, 2, pp. 88-96.

Trueman, B., M.H.F. Wong, and X. Zhang. (2003). Anomalous Stock Returns Around Internet Firms' Earnings Announcements. Journal of Accounting and Economics, 34, 1-3, pp. 249-271.

 

Working Papers

 

Journal Articles

Barber, B., R. Lehavy, and B. Trueman, 2007, Comparing the Stock Recommendation Performance of Investment Banks and Independent Research Firms, Journal of Financial Economics, 85, pp. 490-517.

Barber, B., R. Lehavy, M. McNichols, and B. Trueman, 2006, Buys, Holds, and Sells: The Distribution of Investment Banks' & Stock Ratings and the Implications for the Profitability of Analysts' Recommendations, Journal of Accounting and Economics, 41, 1-2, pp. 87-117.

Barber, B., R. Lehavy, M. McNichols, and B. Trueman, 2003, Reassessing the Returns to Analysts’ Stock Recommendations, Financial Analysts Journal, 59, 2, pp. 88-96.

Trueman, B., M.H.F. Wong, and X. Zhang, 2003, Anomalous Stock Returns Around Internet Firms’ Earnings Announcements, Journal of Accounting and Economics, 34, 1-3, pp. 249-271.

Dutta, S. and B. Trueman, 2002, The Interpretation of Information and Corporate Disclosure Strategies, Review of Accounting Studies, 7, 1, pp. 75-96.

Trueman, B., M.H.F. Wong, and X. Zhang, 2001, Back to Basics: Forecasting the Revenues of Internet Firms, Review of Accounting Studies, 6, 2-3, pp. 305-329.

Barber, B., R. Lehavy, M. McNichols, and B. Trueman, 2001, Can Investors Profit from the Prophets? Consensus Analyst Recommendations and Stock Returns, Journal of Finance, 56, 2, pp. 531-563.

Trueman, B., M.H.F. Wong, and X. Zhang, 2000, The Eyeballs Have It: Searching for the Value in Internet Stocks, Journal of Accounting Research, 38, Supplement, pp. 137-162.

Trueman, B., 1997, Managerial Disclosures and Shareholder Litigation, Review of Accounting Studies, 2, 2, pp. 181-199.

Gennotte, G. and B. Trueman, 1996, The Strategic Timing of Corporate Disclosures, Review of Financial Studies, 9, 2, pp. 665-690.

Trueman, B., 1996, The Impact of Analyst Following on Stock Prices and the Implications for Firms’ Disclosure Policies, Journal of Accounting, Auditing, and Finance, 11, 3, pp. 333-354.

Trueman, B., 1994, Analyst Forecasts and Herding Behavior, Review of Financial Studies, 7, 1, pp. 97-124.

McNichols, M. and B. Trueman, 1994, Public Disclosure, Private Information Collection and Short-term Trading, Journal of Accounting and Economics, 17, 1-2, pp. 69-94.

Trueman, B., 1990, Theories of Earnings-Announcement Timing, Journal of Accounting and Economics, 13, 3, pp. 285-301.

Trueman, B., 1990, On the Incentives for Security Analysts to Revise Their Earnings Forecasts, Contemporary Accounting Research, 7, 1, pp. 203-222.

Trueman, B. and S. Titman, 1988, An Explanation For Accounting Income Smoothing, Journal of Accounting Research, 26, Supplement, pp. 127-139.

Trueman, B., 1988, A Theory of Noise Trading in Securities Markets, Journal of Finance, 43, 1, pp. 83-96.

Titman, S. and B. Trueman, 1986, Information Quality and the Valuation of New Issues, Journal of Accounting and Economics, 8, 2, pp. 159-172.

Trueman, B., 1986, Why Do Managers Voluntarily Release Earnings Forecasts?, Journal of Accounting and Economics, 8, 1, pp. 53-71.

 

Related Links

  • Brett Trueman & David Aboody. Research Yields Warning for Small Investors.

    Study by David Aboody and Brett Trueman finds that shares of market's top-performing companies rise steeply just before earnings announcements, but then fall just as steeply afterward

 

Video

Picks by securities analysts have been relatively profitable

Brett Trueman, Professor of Accounting, Area Chair