Ronald A. Dye

Ronald A. Dye

Academic Affiliate

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Ronald A. Dye is the Leonard Spacek Professor of the Department of Accounting Information and Management at the Kellogg School of Management at Northwestern University. Previously, he was the Accounting Department Chair for fifteen years. He also was the Eric Kohler Professor of Accounting at Northwestern, and he has also held appointments in both economics and accounting at the University of Chicago and appointments in accounting at Yale University, the University of Southern California, and Emory University.

Professor Dye is an expert on the economics of financial reporting, financial disclosures, accounting standards, and managerial accounting. His recent research includes a study of the factors that affect managers’ propensity to engage in earnings management and off-balance sheet financing, how firms’ capital structure decisions affect their voluntary disclosure choices, what variables influence the reliability and relevance of firms’ financial reports, and how firms’ strategic decision making can be improved by the design of their accounting systems.

Professor Dye is a member of the editorial boards of the Journal of Accounting and Economics, the Journal of Accounting Research, Contemporary Accounting Research, and the Review of Accounting Studies. He has been Vice President for Research at the American Accounting Association.

Professor Dye has consulted on a variety of accounting and financial matters, including the financial statement presentation of complex financial transactions, reporting and disclosure of off-balance sheet liabilities, the characterization of direct and overhead costs, accounting and performance measurement at professional service firms, and intellectual property valuation.


Ph.D., Economics, Carnegie Mellon University, 1981
M.S., Economics, Carnegie Mellon University, 1978
B.S., Mathematics, S.U.N.Y. at Cortland, 1976

Areas of expertise

Recent news, presentations, and publications

“Communication and Post-Decision Information”, Journal of Accounting Research (Autumn 1983).

“The Trouble with Tournaments,” Economic Inquiry (January 1984)

“Insider-Trading and Incentives,” Journal of Business (July 1984) (subsequently abstracted in The CFA Digest (Spring 1985)

“Self-selection via Fringe Benefits” with Rick Antle, Journal of Labor Economics (July 1984)

“Costly Contract Contingencies,” International Economic Review. (February 1985)

“Optimal Length of Labor Contracts,” International Economic Review (February 1985)

“Disclosure of Nonproprietary Information,” Journal of Accounting Research (Spring 1985)

“Strategic Accounting Choice and the Effects of Alternative Financial Reporting Requirements,” Journal of Accounting Research (Autumn 1985)

“Proprietary and Nonproprietary Disclosures,” Journal of Business (April 1986)

“An Economic Analysis of Bankruptcy Statutes,” Economic Inquiry (July 1986)

“Cost-Minimizing Welfare Programs,” with Rick Antle, Journal of Public Economics (July 1986)

“Optimal Monitoring Policies in Agencies,” Rand Journal of Economics (Autumn 1986)

“Intrafirm Resource Allocation and Discretionary Actions,” in: Economic Analysis of Information and Contracts:  Essays in Honor of John E. Butterworth, Feltham, Amershi, and Ziemba (editors), (1988)

“Earnings Management in an Overlapping Generations Model,” Journal of Accounting Research (Autumn 1988)

“Mandatory vs. Voluntary Disclosures: The Cases of Financial and Real Externalities,” The Accounting Review, (January 1990)

“Contingent Fees For Audit Firms,” with Bala Balachandran and Robert Magee. Journal of Accounting Research, (Autumn 1990)

“Discretion in Reporting Managerial Performance,” with Robert Magee, Economics Letters, (April 1991)

“Informationally Motivated Auditor Replacement,” Journal of Accounting and Economics, (December 1991)

“Relative Performance Evaluation and Project Selection,” Journal of Accounting Research, (Spring 1992)

“Auditing Standards, Legal Liability, and Auditor Wealth,” Journal of Political Economy, (October 1993)

“Limiting Auditors’ Liability,” Journal of Economics and Management Strategy, (Fall 1993)

“Industry-Wide Disclosure Dynamics,” with Sri Sridharan, Journal of Accounting Research, (Spring 1995)

“Incorporation and the Audit Market,” Journal of Accounting and Economics, (February 1995)

“Discretion vs. Rules: Choices Among GAAP”, with Robert Verrecchia, The Accounting Review, (July 1995)

“Auditing Standards and Legal Liability,” in The New Palgrave Dictionary in Economics and the Law, Peter Newman ed.

“Investor Sophistication and Voluntary Disclosures,” Review of Accounting Studies (1998)

“Risk, Return, and Moral Hazard” with Joel Demski, Journal of Accounting Research (Spring 1999)

“Why Not Allow the FASB and IASB Standards to Compete in the U.S.?” with Shyam Sunder, Accounting Horizons (September 2001)

“Resource Allocation Effects of the Price Reactions to Disclosures,” Contemporary Accounting Research with Sri Sridhar (Fall 2002)

“Classifications Manipulation and Nash Accounting Standards” Journal of Accounting Research (September 2002)

“Investment Implications of Information Acquisition and Leakage,” with Sri Sridhar, Management Science (June 2003)

“Reliability-Relevance Tradeoffs and the Efficiency of Aggregation,” with Sri Sridhar, Journal of Accounting Research (March 2004)

“Strategy Selection and Performance Measurement Choice when Profit Drivers are Uncertain,” Management Science (December 2004)

“Moral Hazard Severity and Contract Design” with Sri Sridhar, Rand Journal of Economics (Spring 2005)

“Equilibrium Voluntary Disclosures when Firms Possess Random Multi-dimensional Private Information,” with Mark Finn,  in Essays on Accounting Theory in Honour of Joel S. Demski, edited by Rick Antle, Pierre Jinghong, and Froysetine  Gjesdal, Springer (forthcoming).

“The Allocational Effects of the Precision of Accounting Estimates,” with Sri Sridhar, Journal of Accounting Research September 2007

“A Positive Theory of Flexibility in Accounting Standards,” with Sri Sridhar., Journal of Accounting and Economics, December 2008

Disclosure “Bunching”, Journal of Accounting Research (June 2010).

“Capital Structure, Cost of Capital, and Voluntary Disclosure,” with Anne Beyer and Jeremey Bertomeu, The Accounting Review (May 2011).

“Reputation Management and Voluntary Disclosure,” with Anne Beyer, Review of Accounting Studies (December 2012).