S.P. Kothari

Director and Chief Economist
Office of the Director

Education Summary

Ph.D., Accounting,
University of Iowa, 1986
M.B.A., Accounting and Finance,
Indian Institute of Management, 1982
B.E., Chemical Engineering,
Birla Institute of Technology and Science, 1979

Fields of Interest

Asset pricing
Corporate governance
Earnings quality
Financial crises
Financial reporting and disclosure
Information and market efficiency
International financial markets
International financial reporting standards

Biography
Professional Experience
Publications
Research
Books
Presentations

S.P. Kothari was named the Chief Economist and Director of the Division of Economic and Risk Analysis (DERA) in March 2019. In this role, he oversees economists, data scientists, and other professionals who provide financial economics and data science in support of the SEC’s mission.

Dr. Kothari joined the SEC from the Sloan School of Management at the Massachusetts Institute of Technology (MIT), where he was a professor of accounting and finance and a former Deputy Dean.

Dr. Kothari spent nearly two decades at MIT, both as a professor and as an administrator. His research interests include financial reporting, valuation, asset allocation, international accounting practices, executive compensation, investment performance, and derivatives.

Dr. Kothari has served as the Co-Chair of the Board of Governors Asia School of Business, Kuala Lumpur, faculty director of the MIT-India Program, and editor of the academic publication Journal of Accounting & Economics. In 2008, he served as global head of equity research for Barclays Global Investors, where he was responsible for research supporting the firm’s active equity strategies and for managing a team of approximately 50 PhDs based around the world.

Dr. Kothari received his B.S. in Engineering from the Birla Institute of Technology & Science and his MBA from the Indian Institute of Management. Dr. Kothari earned his PhD from the University of Iowa.

Dr. Kothari has received honorary doctorates from University of Technology, Sydney (2013), University of Cyprus (2017), and London Business School (2019).

Director and Chief Economist
Division of Economic and Risk Analysis
U.S. Securities and Exchange Commission
2019 – present
Gordon Y Billard Professor of Accounting and Finance
Sloan School of Management
Massachusetts Institute of Technology
2015 – Present
Deputy Dean
Gordon Y Billard Professor of Accounting and Finance
Sloan School of Management
Massachusetts Institute of Technology
2010 – 2015
Global Head of Equity Research
Barclays Global Investors
Barclays Bank
2008 – 2009
Head of the Department of Economics, Finance, and Accounting, and
Gordon Y Billard Professor in Management
Sloan School of Management
Massachusetts Institute of Technology
2006 – 2007
Thomas Henry Carroll-Ford Visiting Professor of Business Administration
Harvard Business School
2005 – 2006
Head of the Department of Economics, Finance, and Accounting, and
Gordon Y Billard Professor in Management
Sloan School of Management
Massachusetts Institute of Technology
2003 – 2005
Gordon Y Billard Professor in Management and Head of the Accounting Group
Sloan School of Management
Massachusetts Institute of Technology
1999 – 2003
Professor and Accounting Area Coordinator
University of Rochester
1998 – 1999
Visiting Professor
Massachusetts Institute of Technology
1997 – 1998
Professor and Accounting Area Coordinator
University of Rochester
1996 – 1997
Associate Professor & Accounting Area Coordinator
University of Rochester
1991 – 1996
Assistant Professor and Accounting Area Coordinator
University of Rochester
1988 – 1991
Assistant Professor
University of Rochester
1986 – 1988

Pozen, R., Kothari, S., 2017, Decoding CEO Pay, Harvard Business Review, July-August, 78-84.
Kothari, S., Swamy, G., Danilov, K., 2012, Generating Superior Performance in Private Equity: A New Investment Methodology, Journal of Investment Management, 11, 28-41.
Kothari, S., Lester, R., 2012, The Role of Accounting in the Financial Crisis: Lessons for the Future, Accounting Horizons, 26, 335-351.
Kothari, S., Warner, J., 2007, Econometrics of Event Studies, in Espen Eckbo, Ed., Handbook of Empirical Corporate Finance,
Kothari, S., Shanken, J., 2003, Time-Series Coefficient Variation in Value-Relevance Regressions: A Discussion of Core, Guay, and Van Buskirk and New Evidence, Journal of Accounting & Economics, 34, 69-87.
Kothari, S., 2000, Role of Financial Reporting in Reducing Financial Risks in the Market, in Eric Rosengren and John Jordan, eds.: Building an Infrastructure for Financial Stability, (Federal Reserve Bank of Boston, pp. 89-102).
Kothari, S., 2000, Discussion of “The Relation Between Analysts’ Forecasts of Long-Term Earnings Growth and Stock Price Performance Following Equity Offerings, Contemporary Accounting Research, 17, 33-39.
Kothari, S., Shanken, J., 1999. Beta and Book-to-Market: Is the Glass Half Full or Half Empty, in: D. B. Keim and W.T. Ziemba, eds.: Security Market Imperfections in Worldwide Equity Markets(Cambridge, U.K.: Cambridge University Press).
Kothari, S., Shanken, J., 1995. In Defense of Beta,Journal of Applied Corporate Finance, 8, 53-58.
Kothari, S., Shanken, J., 1993. Growth Rates, Not Levels, Journal of Applied Corporate Finance, 6, 111-112.
Kothari, S., Shanken, J., 1993, Fundamentals Largely Explain Stock Price Volatility,Journal of Applied Corporate Finance, 6, 81-87.

Collins, D, W., Kothari, S., Rayburn J., 1987, Firm Size and the Information Content of Prices with Respect to Earnings, Journal of Accounting and Economics 9, 111- 138.
Kothari, S., Lys, T., Smith, C., and Watts, R., 1988. Auditor Liability and Information Disclosure, Journal of Accounting, Auditing and Finance 3, 307-339.
Handa, P., Kothari, S., and Wasley, C., 1989, The Relation Between the Return Interval and Betas: Implications for the Size-Effect, Journal of Financial Economics 23, 79-100.
Kothari, S., Wasley, C., 1989, Measuring Security Price Performance in Size Clustered Samples, The Accounting Review 64, 228-249.
Collins, D., Kothari, S., 1989, An Analysis of the Cross-sectional and Intertemporal Determinants of Earnings Response Coefficients, Journal of Accounting and Economics 11, 143-181.
Ball, R., Kothari, S., 1989, Nonstationary Expected Returns: Implications for Tests of Market Efficiency and Serial Correlation in Returns, Journal of Financial Economics 25, 51-74.
Ball, R., Kothari, S., 1991, Security Returns Around Earnings Announcements, The Accounting Review 66, 718-738.
Kothari, S., Sloan, R., 1992, Information in Prices About Future Earnings: Implications for Earnings Response Coefficients, Journal of Accounting and Economics 15, 143-171.
Kothari, S., Shanken, J., 1992, Stock Return Variation and Expected Dividends: A Time-Series and Cross-Sectional Analysis, Journal of Financial Economics 31, 177- 210.
Kothari, S., 1992, Price-Earnings Regressions in the Presence of Prices Leading Earnings: Earnings Level versus Change Specification and Alternative Deflators, Journal of Accounting & Economics 15, 173-202.
Ball, R., Kothari, S., and Watts, R., 1993, The Economics Determinants of the Relation Between Earnings Changes and Stock Returns, The Accounting Review 68, 622- 638.
Handa, P., Kothari, S., Wasley, C., 1993 Sensitivity of Multivariate Tests of the CAPM to the Return Measurement Interval, Journal of Finance 48, 1543-1551.
Collins, D., Kothari, S., Shanken, J., and Sloan, R., 1994, Lack of Timeliness and Noise as Explanations for Low Contemporaneous Return-Earnings Association, Journal of Accounting & Economics 18, 289-324.
Ball, R., Kothari, S., Wasley, C., 1995, Can We Implement Research on Stock Trading Rules? Journal of Portfolio Management 21, 54-63.
Ball, R., Kothari, S., Shanken, J., 1995, Problems in Measuring Portfolio Performance: An Application to Contrarian Investment Strategies, Journal of Financial Economics 38, 79-107.
Kothari, S., Shanken, J., Sloan, R., 1995, Another Look at the Cross-Section of Expected Stock Returns, Journal of Finance 50, 185-224.
Kothari, S., Zimmerman, J., 1995, Price and Return Models, Journal of Accounting and Economics 20, 155-192.
Guay, W., Kothari, S., Watts, R., 1996, A Market-based Evaluation of Discretionary-Accrual Models, Journal of Accounting Research Supplement 34, 83-115.
Kothari, S., Warner, J., 1997, Measuring Long-Horizon Security Price Performance, Journal of Financial Economics 43, 301-339.
Kothari, S., Shanken, J., 1997, Book-to-Market, Dividend Yield, and Expected Market Returns: a Time-Series Analysis, Journal of Financial Economics 44, 169-203.
Dechow, P., Kothari, S., Watts, R., 1998, The Relation Between Earnings and Cash Flows, Journal of Accounting & Economics 25, 133-168.
Ball, R., Kothari, S., Robin, A., 2000, The Effect of International Institutional Factors on Properties of Accounting Earnings, Journal of Accounting & Economics 29, 1-51.
Kothari, S., Warner, J., 2001, Evaluating Mutual Fund Performance, Journal of Finance 56, 1985-2010.
Hentschel, L., Kothari, S., 2001, Are Corporations Reducing or Taking Risks with Derivatives? Journal of Financial and Quantitative Analysis 36, 93-118.
Kothari, S., 2001, Capital Markets Research in Accounting, Journal of Accounting & Economics 31, 105-231.
Kothari, S., Laguerre, T., Leone, A., 2002, Capitalization versus Expensing: Evidence on the Uncertainty of Future Earnings from Capital Expenditures versus R&D Outlays, Review of Accounting Studies 7, 355-382.
Core, J., Guay, W., Kothari, S., 2002, The Economic Dilution of Employee Stock Options: Diluted EPS for Valuation and Financial Reporting, The Accounting Review 77, 627-652.
Guay, W., Kothari, S., 2003, How Much Do Firms Hedge with Derivatives? Journal of Financial Economics 70, 423-461.
Guay, W., Kothari, S., Sloan, R., 2003, Accounting for Employee Stock Options, American Economic Review 93, 405-409.
Kothari, S., Shanken, J., 2004, Asset Allocation with Inflation-Protected Bonds, Financial Analysts Journal 60, 54-70.
Chan, W., Kothari, S., Frankel, R., 2004, Testing Behavioral Finance Theories Using Trends and Consistency in Financial Performance, Journal of Accounting & Economics 38, 3-50.
Kothari, S., Sabino, J., Zach, T., 2005, Implications of Survival and Data Trimming for Tests of Market Efficiency, Journal of Accounting & Economics 39, 129-161.
Kothari, S., Leone, A., Wasley, C., 2005, Performance Matched Discretionary Accrual Measures, Journal of Accounting & Economics 39, 163-197.
Barclay, M., Gode, D., Kothari, S., 2005, Matching Delivered Performance, Journal of Contemporary Accounting & Economics 1, 1-25.
Frankel, R., Kothari, S., Weber, J., 2006, Determinants of the Informativeness of Analyst Research, Journal of Accounting & Economics 41, 29-54.
Kothari, S., Lewellen, J., Warner, J., 2006, Stock Returns, Aggregate Earnings Surprises, and Behavioral Finance, Journal of Financial Economics 79, 537-568.
Kolasinski, A., Kothari, S., 2008, Investment Banking and Analyst Objectivity: Evidence from Analysts Affiliated with M&A Advisors, Journal of Financial and Quantitative Analysis 43, 817-842.
Jin, L., Kothari, S., 2008, Effect of Personal Taxes on Managers’ Decision to Sell Unrestricted Equity, Journal of Accounting & Economics 46, 23-46.
Kothari, S., Li, X., Short, J., 2009, The Effect of Disclosures by Management, Analysts, and Financial Press on the Equity Cost of Capital: A Study Using Content Analysis, The Accounting Review 84, 1639-1670.
Kothari, S., Shu, S., Wysocki, P., 2009, Do managers withhold bad news? Journal of Accounting Research 47, 241-276.
Kothari, S., Ramanna, K., Skinner, D., 2010, Implications for GAAP from an Analysis of Positive Research in Accounting, Journal of Accounting & Economics 50, 246- 286.
DeFranco, G., Kothari, S., Verdi, R., 2011, The Value of Earnings Comparability, Journal of Accounting Research 49, 895-931.
Guay, W., Kothari, S., Shu, S., 2011, Properties of Implied Cost of Capital Using Analysts’ Forecasts, Australian Journal of Management 36, 125-149.
Ball, R., Kothari, S., Nikolaev, V., 2013, On Estimating Conditional Conservatism, The Accounting Review 88, 755-787.
Ball, R., Kothari, S., Nikolaev, V., 2013, Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism, Journal of Accounting Research, 51, 1071-1097.
Kothari, S., Mizik, N., Roychowdhury, S., 2016, Managing for the Moment: The Role of Real Activity versus Accrual Earnings Management in SEO Valuation, The Accounting Review, 91, 559-586.
Jayaraman, S., Kothari, S., 2016, The Effect of Corporate Transparency on Bank Risk-Taking and Banking System Fragility, The Accounting Review, 91, 535-558.
Kothari, S., So, E., Verdi, R., 2016, Analysts’ Forecasts and Asset Pricing: A Survey, Annual Review of Financial Economics, 8, 197-219.
Kothari, S., Lewellen, J., Warner, J., 2016, The Behavior of Aggregate Corporate Investment, working paper, MIT Sloan School of Management.
Jayaraman, S., Kothari, S., Ramanna, K. 2017, Capture and Competition: The Role of Product Market Competition in Reallocating Rents from Regulatory Capture, working paper, MIT Sloan School of Management.
He, X, Kothari, S., Xiao, T., Zuo, L., 2018, Long-Term Impact of Business Cycles on Auditors’ Judgment, forthcoming in The Accounting Review.
Guest, N., Kothari, S., So, E., 2017, Flight-to-Dividends: The Role of Earnings in Periods of Capital Scarcity, working paper, MIT Sloan School of Management.
Guest, N., Kothari, S., Pozen, R., 2017, High Non-GAAP Earnings Predict Abnormally High CEO Pay, working paper, MIT Sloan School of Management.
He, X, Kothari, S., Xiao, T., Zuo, L., 2018, Knowledge Transfer in Audit Firms, working paper, MIT Sloan School of Management.
Elavia, T., Kothari, S., Li, X., You, H., 2019, Gains from Markowitz Optimization: Evidence from Re-optimization of Mutual Fund Holdings, working paper, MIT Sloan School of Management.
Frankel, R., Kothari, S., Zuo, L., 2018, Why shareholder wealth maximization despite other objectives, working paper, MIT Sloan School of Management.
Kothari, S., Loutskina, E., Nikolaev, V., 2011, Agency Theory of Overvalued Equity as an Explanation for the Accrual Anomaly, working paper, MIT Sloan School of Management.
Guay, W., Kothari, S., Loktionov, Y., 2008, Accounting for Derivatives in Emerging Market Economies, working paper, MIT Sloan School of Management.

Financial Statement Analysis, Edited by Ray Ball and S.P. Kothari, McGraw-Hill, 1994.
Contemporary Accounting Research: Synthesis and Critique, Edited by S.P. Kothari, Thomas Z. Lys, Douglas J. Skinner, Ross L. Watts, and Jerold L. Zimmerman, North-Holland Publishing, 2002.

Conference Activities

USC, NY Federal Reserve Bank, 2013
Canadian Accounting Association, London School of Economics, Fudan University, and Xi’an Jiaotong University.
APJAE Conference in Kuala Lumpur, Emory University, AAA Doctoral Consortium, Harvard University, Fed-JFE Conference at Ohio State University, the U.S. Securities & Exchange Commission, Case Western Reserve University, University of Maryland, and Financial Economics and Accounting Conference at USC, 2004
FARS Conference, APJAE Conference in Shanghai, University of Southern California, and University of Technology at Sydney, 2003
AAA-KPMG International Accounting Conference at Montvale, NJ, University of British Columbia, University of Tilburg in Holland, INSEAD in France, University of Colorado at Denver, University of Michigan, University of Oklahoma, Financial Economics and Accounting Conference at the University of Texas at Austin, and Boston Area Research Colloquium at Boston University, 1999

University Presentations

2018 MIT Sloan, PCAOB in Washington DC, SEC in Washington DC, Keynote speech at the Conference on Financial Economics and Accounting at Tulane University.
2017 Oxford University Blavatnik School, MIT, Indian Institute of Management, Ahmedabad, Tulane University.
2016 Hong Kong Polytechnic University, IIT, Bombay, Texas Christian University, Chinese University of Hong Kong, London Business School, University of Iowa, City University London
2015 Lehigh University, University of California, Irvine, Ohio State University, University of Cyprus, MIT Club of Cyprus, Indian School of Business National Conclave
2014 Louisiana State University, National Taiwan University
2012 Harvard Business School, Tsinghua University, Sun Yat-Sen University, and HKUST.
2010 University of Chicago, University of Texas at San Antonio, and Sabanci University, Istanbul. Jiaotong University.
2009 Temple University, London Business School, University of Rochester, Stanford University, American Accounting Association meetings in New York, Georgetown University, JAE Conference at MIT, and BITS Pilani.
2008 Lancaster University and University of Manchester.
2007 Indian Institute of Management, Calcutta, Brigham Young University, University of California, Riverside, University of Edinburgh, University of Southern California, University of Texas at Austin, Tuck at Dartmouth College, University of California, Los Angeles, Washington University in St. Louis, University of Massachusetts at Amherst, BARC Seminar at Boston University, Association of Finance Professionals, Boston, and London Business School.
2006 Stanford University, Southern Methodist University, University of Georgia, Rutgers University, University of Chicago, Ohio State University, University of Minnesota, Michigan State University, Indian Institute of Technology, Bombay, BSI Gamma Foundation, Switzerland, and Cornell University.
2005 Journal of Accounting, Auditing, and Finance Conference at NYU, Harvard University, Carnegie Mellon University, Samsung School of Business, S. Korea, and University of Texas at Dallas. 2002 Georgetown University, London Business School Donor Seminar, University of Pittsburgh, London Business School Symposium, Cornell University, Oklahoma State University, University of Rochester, New York University, Arizona State University, and Wharton School at the University of Pennsylvania.
2001 Cranfield University, Yale University, University of Rochester, HKUST, University of Technology at Sydney, University of Chicago, Pennsylvania State University, University of Texas at Dallas, MIT, and Duke University.
2000 Australian Graduate School of Management, University of Technology at Sydney, University of Sydney, Syracuse University, Boston Federal Reserve Annual Research Conference, Stanford University, Harvard University, AAA-BAA conference at Cambridge University, European Financial Association Conference in London, University of Chicago, American Accounting Association meetings in Philadelphia, and MIT Sloan School of Management. 1998 Stanford University, Morningstar Inc. at Chicago, New Faculty Consortium at St. Charles, University of Notre Dame, University of Alberta, University of Technology at Sydney, University of Iowa, University of California at Berkeley, Contemporary Accounting Research Conference at Vancouver, and University of California at Los Angeles.
1997 University of Southern California, Tulane University, Ibbotson Associates Cost of Capital Conference at Chicago, London School of Economics, City University Business School at London, National Association of Pension Funds at London, University of Technology at Sydney, Harvard University, University of Rochester, Washington University at St. Louis, Cornell University, and Columbia University.
1996 Northwestern University, City University Business School, KOC University at Istanbul, University of New South Wales at Sydney, JAR Conference at Chicago, Michigan, ISDA Conference, Washington DC, Arizona, AAA meetings at Chicago, Boston College, and University of Maryland.
1995 City University Business School at London, Western Finance Association Meeting at Aspen, Colorado, AAA Meetings at Orlando, SUNY at Buffalo, Syracuse University, and Rice University.
1994 University of Manchester, University of Glasgow, Carnegie Mellon University, Harvard Business School, London Business School, and Baruch CUNY.
1993 Baruch CUNY at New York, Pennsylvania State University, City University Business School at London, Institute for Quantitative Investment Research at Cambridge, Accounting and Finance Conference at St. Louis, International Seminar on Futures and Options in Mumbai, India, University of Iowa, and Iowa State University.
1992 Cornell University, Vanderbilt University, University of Wisconsin at Madison, University of Illinois, University of Nebraska, Stanford University Summer Camp, AAA Meetings at Washington D.C., Duke University, Michigan State University, Wharton School at the University of Pennsylvania, SUNY at Buffalo, University of Missouri at Columbia, and JAAFPeat Marwick Conference.
1991 Arizona State University, Indiana University, and University of Michigan.
1990 Harvard University, Northwestern University, Ohio State University, University of Arizona, University of Southern California, Temple University, Washington University at St. Louis, AAA meetings at Toronto, European Finance Association meetings, and Contemporary Accounting Research Conference.
1989 Columbia University Research Conference, Duke University, University of Iowa, Stanford University, University of California at Berkeley, University of Minnesota, New York University, and University of Pennsylvania at College Park.
1988 University of Chicago, Cornell University, University of Washington at Seattle, SUNY at Buffalo, and Michigan State University.
1987 University of Michigan, Massachusetts Institute of Technology, SUNY at Buffalo, International Conference on Forecasting at Boston, and AAA Meetings.
1986 SUNY at Buffalo, University of Michigan, University of Rochester, University of Chicago, Wharton School, Northwestern University, Washington University at St. Louis, University of Texas at Austin, and Carnegie Mellon University.

Biography