Henry Friedman

Profile photo of Henry Friedman
“It’s great being surrounded by students and peers who are interested in the production and use of highly structured information about organizational performance and condition, that is, who are interested in accounting in a broad sense.”

Assistant Professor of Accounting

Areas of Expertise

  • Entrepreneurship
  • Incentive Compensation
  • Reporting Quality
  • Securities Market Regulation and Standards




Henry Friedman is an assistant professor of accounting. His research interests relate broadly to how information is produced and used in firms and capital markets involving issues related to incentive provision, price formation, managerial expropriation and investor beliefs. In his dissertation, he investigated interactions between incentive compensation, reporting quality, and the role and responsibilities of the CFO, with an emphasis on the effects of CEO power over the CFO in the reporting process.

At the University of Pennsylvania, Friedman taught core managerial accounting and helped teach entrepreneurship and materials science and engineering courses as a graduate fellow for the Innovation and Technology Management course. At UCLA Anderson, Friedman teaches introductory financial accounting and runs an online pre-term course to help entering students prepare for their first-year accounting class.

Friedman considers himself a tutor as well as a researcher and teacher, helping people to understand potentially complicated subjects and make better evidence-based decisions. He encourages students to connect their coursework to their professional as well as personal lives. “I teach accounting fundamentals, which are essentially about what an entity owns, owes and has accomplished,” he says.

Friedman admits a fondness for puzzles, particularly those that involve applications of game theory in business environments and estimating potential causal effects that might otherwise go unnoticed or misunderstood. His current research is related to disclosure and securities regulation, examining how disclosure standards affect noise trade and how securities regulation might affect firms’ investment and lobbying choices. Prior work has focused on the effects of self-efficacy on entrepreneurial investment.

When he’s away from campus, Friedman enjoys good TV, bad TV, live music and exercise fads. Both he and his wife volunteer occasionally at an animal shelter in West L.A.



Financial Accounting



Ph.D. Accounting 2012, University of Pennsylvania

M.A. Accounting 2012, University of Pennsylvania

B.S. Economics 2007, University of Pennsylvania

B.S. Materials Science and Engineering 2007, University of Pennsylvania



Global Research Award for 2016–2017 (this year)

Global Research Award, UCLA Anderson Center for Global Management, 2014–2015

Global Research Award, UCLA Anderson Center for Global Management, 2013–2014

Competitive Manuscript Award, American Accounting Association, 2013

MAS Dissertation Award, AAA Management Accounting Section, 2013

Global Research Award, UCLA Anderson Center for Global Management, 2012–2013

Academic Fellow, UCLA Anderson Fink Center for Finance and Investments, 2012



Gavin Cassar and Henry Friedman. (2009). Does Self-Efficacy Affect Entrepreneurial Investment? Strategic Entrepreneurship Journal, 3:241-260.

Henry Friedman. (2014). Implications of power: When the CEO can pressure the CFO to bias reports. Journal of Accounting and Economics, 58(1):117-141.

Henry Friedman, Jack Hughes, and Richard Saouma. (2016). Implications of biased reporting: conservative and liberal accounting policies in oligopolies.  Review of Accounting Studies, 21(1):251-279.

Brian Bushee and Henry Friedman. (2016). Disclosure Standards and the Sensitivity of Returns to Mood.  Review of Financial Studies, 29(3):787-822.

Henry Friedman and Mirko Heinle. (2016).  Lobbying and Uniform Disclosure RegulationJournal of Accounting Research, 54 (3):863-893.

Henry Friedman and Mirko Heinle. (2016). Taste, Information, and Asset Prices: Implications for the Valuation of CSRReview of Accounting Studies, Forthcoming.

Henry Friedman. (2016). Implications of a multi-purpose reporting system on CEO and CFO incentives and risk preferencesJournal of Management Accounting Research, Forthcoming.


Working Papers

Financial Reporting and Noise in Stock Returns: Evidence from Chinese A-B Twin Shares [link] With Liang Ma and Tao Ma

Influence Activities, Coalitions, and Uniform Policies [link] With Mirko Stanislav Heinle

Gender bias, portfolio choice, and firm value [ link ]

Capital market development and the perceived strength of financial reporting and auditing standards [ link ]

The impact of discretionary disclosure on financial reporting systems: an extension of Bayesian persuasion [ link ] With Jack Hughes and Beatrice Michaeli


Media Coverage

“Disclosure Standards and the Sensitivity of Returns to Mood” The Harvard Law School Forum on Corporate Governance and Financial Regulation (online). December 7, 2015. http://corpgov.law.harvard.edu/2015/12/07/disclosure-standards-and-the-sensitivity-of-returns-to-mood/

"The Age of Vernon Jordan is Over—Serving on a Board is a Full-Time Job Now" TheStreet (online). August 31, 2015. http://www.thestreet.com/story/13271386/3/the-age-of-vernon-jordan-is-over-serving-on-a-board-is-a-full-time-job-now.html

"Research Roundup: 'One-size-fits-all' Regulation, Avoiding Decision Traps and How Sex Cues Affect Sales" Knowledge@Wharton (online). November 7, 2012. http://knowledge.wharton.upenn.edu/article.cfm?articleid=3110

"Does corporate lobbying benefit society?" by Moshe Silver. CNN Money (online). September 28, 2012. http://finance.fortune.cnn.com/2012/09/28/corporate-lobbying/

“The Merits of One-Size-Fits-All Securities Regulation” The Harvard Law School Forum on Corporate Governance and Financial Regulation (online). September 21, 2012 http://blogs.law.harvard.edu/corpgov/2012/09/21/the-merits-of-one-size-fits-all-securities-regulation

“How Much Market Noise? Look Out the Window” by Steven Mintz. Institutional Investor (online). May 17. 2012. http://www.institutionalinvestor.com/Article/3030134/Search/How-Much-Market-Noise-Look-Out-the-Window.htm