The economics of accounting is a growing area of research within LSE’s Department of Accounting. Work within this strand investigates accounting issues from an economics perspective using largely quantitative methods, including field experiments.
Areas of research for faculty in this area include: the use of financial information in internal and external decision-making by firms, credit providers and other organisations; the role of accounting information in financial markets; labour market information; budgeting, performance measurement and employee incentive systems; the modelling of disclosures; the interaction between financial reporting and legal and economic institutions; corporate social responsibility; the role of information intermediaries; and financial risk management.
With the huge expansion of data availability, data science and quantitative approaches to accounting research continue to grow in significance, and in its ability to re-shape how we use and evaluate accounting information.
The Economics of Accounting group publishes extensively in top-tier academic journals and faculty members serve on the editorial boards of these journals. It also actively engages with professional bodies, standard setters and policy makers, corporations, financial intermediaries (such as auditors, financial analysts, rating agencies), as well as investors and other stakeholders .
To find out more about the group’s recent work, read the research spotlights, and publication list below.
Research in focus
Recent publications