Simon Business School
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Faculty Profile

Jaewoo Kim
Assistant Professor
Phone: 585.275.0790
Office: 3-314 Carol Simon Hall

Bio

Professor Kim’s research focus is to understand the economic determinants of managers’ reporting and disclosing decisions, how accounting information is used by capital market participants, and the economic determinants and consequences of corporate tax avoidance. Kim earned an MBA from Korea Advanced Institute of Science and Technology (KAIST) and a BA in Economics from Korea University.

Teaching Interests

Financial and Managerial Accounting

Research Interests

The economic determinants and consequences of accounting information, capital market research in accounting, and corporate tax avoidance

Professional History

Jr. Performance Evaluation Officer, Assistant Accounting Manager - Asset Management
Samsung Life Insurance
2000 - 2008

Education

University of Iowa - 2013
Ph D
Accounting
Korea Advanced Institute of Science and Technology - 2004
MBA
Korea University - 2000
BA
Economics

Current Research Programs

Economic Determinants of Changes in the Aggregate Earnings-Returns Relation over Time
Prior research documents a negative contemporaneous relation between earnings changes and stock returns at the aggregate level. We find that the aggregate earnings-return relation turns significantly positive in recent years (1992-2013). As explanations for that shift we test over-time shifts in the properties of firm-level earnings and the magnitude of inflation rates. To do so we use the Bureau of Economic Analysis’ (BEA) corporate profits series as an alternative measure of aggregate earnings because it is unaffected by changes in GAAP measurement rules and is adjusted for changes in price levels. While changes in both aggregate GAAP earnings and the BEA’s corporate profits series exhibit a significant negative (positive) relation with aggregate returns in the 1970-1991 (1992-2013) period, changes in aggregate GAAP earnings have incremental explanatory power for aggregate returns beyond the BEA’s corporate profit measure in the 1992-2013 period. Additional analysis reveals that such incremental explanatory power stems from GAAP earnings’ inclusion of non-operating items. We also find that a shift over time in inflation, as well as in the proportion of loss-making firms, contribute to inter-temporal variation in the aggregate earnings-returns relation. The effect of changes in the properties of GAAP earnings and inflation rates over time on the aggregate earnings-return relation is new to the literature.
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