Paul A. Griffin
Professor of Management
Research Expertise: Accounting, accounting and financial theory, evaluation of accounting methods, financial information and disclosures
Professor Paul Griffin is a leading international authority in accounting and financial information and disclosures. He has published over 50 articles in leading accounting and finance journals, five research monographs for the Financial Accounting Standards Board, and two case books on U.S. corporate financial reporting. His research has had a substantial impact on the profession. According to a study of influential articles, he is one of a small group whose articles are now “classics” in the field.
His recent publications in accounting and auditing focus on audit fee behavior, corporate governance under Sarbanes-Oxley, stock option compensation, and SEC reporting under Regulation FD and the Dodd-Frank Act’s Section 1502 disclosure rule on use of conflict minerals. His current research projects examine relations between stock prices and greenhouse gas emissions and the informational role of short interest for corporate bond prices. Professor Griffin recently served as co-editor of Accounting Horizons.
Before Davis, Griffin was an assistant professor at the Stanford University’s Graduate School of Business.
Savvy investors who follow short sellers to predict bearish news about a company’s stock — and sell their stocks in that company to avoid losses – should keep an eye on the company’s bonds as well, a new UC Davis study suggests.
- 2015 Midyear Meeting Best Paper Award sponsored by KMPG, American Accounting Association, Accounting Information Systems Section, “The SEC’s XBRL Mandate and Credit Risk: Evidence on a Link between Credit Default Swap Pricing and XBRL Disclosure.”
- Highly Commended Paper of 2014, Pacific Accounting Review, “Supply chain sustainability: Evidence on conflict minerals.”
- Fellow of the New Zealand Institute of Chartered Accountants (FCA), Awarded for distinction, excellence, and service to the accountancy profession in New Zealand, 2012.
- Best Conference Paper Overall; Best Conference Paper in Accounting, Financial Markets and Corporate Governance Conference, Melbourne, Australia, 2012.
- Runner-up, 2011 Peter Brownell Best Manuscript Award, Accounting & Finance, “Enforcement and Disclosure Under Regulation Fair Disclosure: An Empirical Analysis,” Volume 51, No. 4, June 2011.
- Keynote Speaker, Australian National Centre for Auditing and Assurance Research (ANCAAR) Research Forum, Canberra, Australia, 2010.
- Distinguished International Lecturer, University of Technology, Sydney, Australia, 2010.
- 2010 Peter Brownell Best Manuscript Award, Accounting & Finance, “Agency Problems and Audit Fees: Further Tests of the Free Cash Flow Hypothesis,” 2010.
- Runner-up, 2009 Peter Brownell Best Manuscript Award, Accounting & Finance, “Governance Regulatory Changes, International Financial Reporting Standards Adoption, and New Zealand Audit and Non-Audit Fees: Empirical Evidence,” 2009.
by Professor Paul Griffin
Nestled among the world-renowned vineyards of the Napa Valley is The Pathway Home, an innovative therapeutic community for U.S. soldiers returning from the frontlines of Afghanistan and Iraq who suffer from post-traumatic stress disorder (PTSD) and traumatic brain injury (TBI).
Insiders have reaped substantial profits from increased trading of a faltering company’s stock when the firm is renegotiating its debt, according to a recent study by Professor Paul Griffin and colleagues David Lont and Kate McClune of the University of Otago, New Zealand.
(Davis, CA) — The American Accounting Association has named Professor Paul Griffin as co‐editor of Accounting Horizons, one of the association’s two flagship academic journals.
Griffin will share the editorship with Professor Arnold Wright of Northeastern University. They will assume the posts in late spring 2012, when current co-editors Dana Hermanson and Terry Shevlin complete their three-year term.
Professor Paul Griffin’s ground-breaking research on insider trading suggest that U.S. companies gleaned almost $2 Billion in profits from buying and selling of stock in faltering companies. The joint-study was conducted with the University of Otago’s School of Business in New Zealand.
Professor Paul Griffin is cited in a discussion on the efficiency of company stock buybacks. Corporate executives and boards of directors can easily make their stock options more valuable without making any improvement to the business by executing buybacks, says Griffin.
Inside traders at public U.S. companies made nearly $2 billion from 2000 to 2007, according to the study led by Paul Griffin, a professor in UCD’s Graduate School of Management. The study tracked insider stock transactions that occurred during or near 1,718 first-time disclosures of debt covenant violations by companies. Statistical analysis showed that insiders sold stock one to two months ahead of market declines preceding a disclosure, and bought shares one to two months ahead of market recovery.
UC Davis Study Finds Suspicious and Highly Profitable Insider Stock Trading around Company Debt Renegotiation
(Davis, CA) — Insiders have reaped substantial profits from increased trading of a faltering company’s stock when the firm is renegotiating its debt, according to a new study by GSM Professor Paul Griffin and David Lont of the University of Otago in New Zealand.
Dean Steven Currall and Professor Paul Griffin are experts available to comment to media about the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law on July 21.
How Will the Billions of ‘Free’ Climate Change Allowances Under Cap-and-Trade Affect U.S. Companies’ Balance Sheets?
This study by Professor Paul Griffin examines the impact of the “free” climate change allowances under the proposed American Clean Energy and Security Act of 2009 on the balance sheets and income statements of companies in the S&P 500, estimated by the Congressional Budget Office to be as high as $700 billion over 2010-2019. Some observers contend that these allowances will generate “large windfall profits to various politically favored industries at the expense of U.S. consumers.”
Small investors could be big losers if a federal climate change plan known as cap and trade becomes law and accounting standards for carbon credits are not yet established, suggests a new study by Professor Paul Griffin.
(Davis, CA) — Small investors could be big losers if a greenhouse gas reduction plan known as cap and trade becomes law and accounting standards for carbon credits have not been established, according to a new study released today by a University of California, Davis, professor.
In an analysis of pending federal legislation and accounting practices, UC Davis management professor Paul Griffin determined that U.S. companies would receive up to $36 billion in climate change allowances next year under provisions of a bill the U.S. House of Representatives passed last year.
Agency Problems and Audit Fees: Further Tests of the Free Cash Flow Hypothesis
Accounting & Finance, 2010
This study, by Professor Paul Griffin and co-authors David H. Lont from the University of Otago and Yuan Sun from UC Berkeley, finds that the agency problems of companies with high free cash flow (FCF) and low growth opportunities induce auditors of companies in the United States to raise audit fees to compensate for the additional effort. They also find that high FCF companies with high growth prospects have higher audit fees.
Companies that generate high levels of cash flow might appear to be a solid market investment. However, finance researchers have shown that when companies build up more cash flow than they need, errant managers tend to spend the excess unwisely, which can actually drain shareholder value.
Students in Professor Paul Griffin’s MBA elective on financial analysis and valuation recently presented their detailed reports on company value, issuing “buy” recommendations on a few gems whose potential Wall Street may not yet fully appreciate, perhaps because they has been unfairly trampled by negative sentiment.
In the midst of the financial crisis and taxpayer-funded bailouts of the likes of AIG, public outrage and government scrutiny over the pay packages of executives at companies receiving federal aid has reached new heights. Largely missing from the debate over executive compensation is the unintended consequence that accounting rules have on rewards in the form of stock buybacks.
Governance Regulatory Changes, International Financial Reporting Standards Adoption, and New Zealand Audit and Non-Audit Fees: Empirical Evidence
Accounting and Finance, 2009
This study, by Professor Paul Griffin and co-authors David H. Lont from the University of Otago and Yuan Sun from UC Berkeley, examines the association between overseas and New Zealand governance regulatory reforms and New Zealand companies’ audit and non-audit fees.
With all eyes on the $700 billion in bailout funds, some of the nation’s largest banks have received additional financial help thanks to a new tax policy quietly issued by the Treasury Department in September. Professor Paul Griffin an internationally recognized specialist in the areas of accounting, financial valuation and business taxation, has been called on to unravel the complex implications of the sweeping change, which gives substantial tax breaks to companies that acquire struggling banks hit hard by the sub-prime mortgage crisis.
While audit fees have gone up substantially in the U.S. since 2002 in response to the Sarbanes-Oxley Act (SOX) and related regulations, it is unclear whether such reforms should have a major impact on audit markets in other countries. How have New Zealand audit firms fared in light of such regulatory initiatives? According to Professor Paul Griffin and his co-authors Yuan Sun and David Lont of the University of Otago, New Zealand, auditing firms reacted differently to the change by not raising their fees following the passage of SOX.
Professor Paul Griffin’s recent class on company valuation analysis posed a special challenge this year: how to value a company in tough economic times, including the impact of the subprime debt crisis. Despite the challenging market conditions, students spotlighted several companies believed to be significantly mispriced by equity investors.
Professor Paul Griffin and his coauthors David Lont and Yuan Sun of the School of Business, University Otago, Dunedin, recently presented their article “Corporate Governance and Audit Fees: Evidence of Countervailing Relations” at a joint symposium hosted by the Journal of Contemporary Accounting and Economics and Auditing: A Journal of Practice & Theory at The Hong Kong Polytechnic University on January 4-5, 2008.
Stock prices dip about three percentage points immediately following the announcement of an auditor’s resignation, a study by Professor Paul Griffin shows. “A resignation seems to foreshadow an underlying message about changes in fundamentals, particularly future profitability and growth, Griffin says.” Read the study online.
Public companies that have had auditors recently resign may not be a good stock investment. The stock prices of these companies dip by about three percentage points following the announcement of an auditor’s resignation, according to a study by Professor Paul Griffin and co-author David Lont of the University of Otago, New Zealand.
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