Eli Amir

Eli Amir is a Professor of Accounting at Tel Aviv University’s Recanati Graduate School of Management and a part time Professor at City University of London (Cass). Until August 2012, Amir was a Professor at London Business School. From May 2000 to April 2003, Amir was the Chairman of the Israel Accounting Standards Board. Amir received his B.A. degree in Accounting and Economics from Tel Aviv University (1986) and his Ph.D. in Business Administration from the University of California, Berkeley (1991). He is a Certified Public Accountant in Israel since 1987. Amir teaches courses in financial accounting, corporate financial reporting, financial statement analysis, financial analysis of mergers and acquisitions and empirical research in accounting. Amir’s research concentrates on financial analysis, equity valuation, pension asset allocation, auditing and the association between personal attributes and corporate decisions. He has published articles in leading academic journals such as the Review of Accounting Studies, The Accounting Review, Journal of Accounting and Economics, and Journal of Accounting Research.

Qualifications

PhD Business Administration (Accounting), W.A.Haas School of Business, University of California, United States, 1991

Languages

Hebrew.

Research

My current research interests focus primarily on financial statement analysis. In particular, I am interested in developing an economic framework for financial ratio analysis. In a recent paper, my co-authors and I show that the market reaction to a ratio depends not only on its unconditional persistence (its autocorrelation coefficient), but on its conditional persistence (the ability of the variable’s persistence to explain the persistence of a variable higher in the hierarchy). We also provide a theory for why ratio analysis is useful in detecting and suppressing earnings management. We argue that ratios are useful because they are more resistant to transitory shocks and manipulations. Building on this theory, we develop a simple measure of earnings quality, which is based on deviations from normal profit margins.

Research Topics

Conditional Persistence of Earnings Components and Accounting Anomalies

In a recent paper, we show that the market reaction to earnings components depends not only on its unconditional persistence (its autocorrelation coefficient), but on its conditional persistence (the ability of the variable’s persistence to explain the persistence of a variable higher in the hierarchy). We conjecture that investors focus on the unconditional persistence of earnings components, rather than on their conditional persistence, which could lead to market mis-pricing. We show that the post-earnings announcement drift, the post-revenue announcement drift and the accrual anomaly are partially related to investors ignoring the conditional persistence of earnings components.

The Association between Auditor Independence and Accounting Conservatism

We argue and find that more independent auditors exercise a higher degree of accounting conservatism.

Criminal Convictions and Risk Taking

We use information on Swedish directors, CEOs and CFOs and find that individuals with criminal convictions tend to take more risk.

Journal Articles (28)

• Amir, E., Kama, I. and Levi, S. (2015). Conditional Persistence of Earnings Components and Accounting Anomalies. Journal of Business Finance and Accounting, 42(7-8), pp. 801–825. doi:10.1111/jbfa.12127.
• Amir, E., Einhorn, E. and Kama, I. (2014). The role of accounting disaggregation in detecting and mitigating earnings management. Review of Accounting Studies, 19(1), pp. 43–68. doi:10.1007/s11142-012-9220-9.
• Amir, E., Kallunki, J.P. and Nilsson, H. (2014). The association between individual audit partners' risk preferences and the composition of their client portfolios. Review of Accounting Studies, 19(1), pp. 103–133. doi:10.1007/s11142-013-9245-8.
• Amir, E., Kallunki, J.P. and Nilsson, H. (2014). Criminal convictions and risk taking. Australian Journal of Management, 39(4), pp. 497–523. doi:10.1177/0312896213513276.
• Amir, E., Einhorn, E. and Kama, I. (2013). Extracting Sustainable Earnings from Profit Margins. European Accounting Review, 22(4), pp. 685–718. doi:10.1080/09638180.2012.749067.
• Amir, E., Kama, I. and Livnat, J. (2011). Conditional versus unconditional persistence of RNOA components: Implications for valuation. Review of Accounting Studies, 16(2), pp. 302–327. doi:10.1007/s11142-010-9138-z.
• Amir, E., Guan, Y. and Livne, G. (2010). Auditor independence and the cost of capital before and after Sarbanes-Oxley: The case of newly issued public debt. European Accounting Review, 19(4), pp. 633–664. doi:10.1080/09638180903503986.
• Amir, E., Guan, Y. and Oswald, D. (2010). The effect of pension accounting on corporate pension asset allocation. Review of Accounting Studies, 15(2), pp. 345–366. doi:10.1007/s11142-009-9102-y.
• Amir, E., Guan, Y. and Livne, G. (2007). The association of R&D and capital expenditures with subsequent earnings variability. JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 34(1-2), pp. 222–246. doi:10.1111/j.1468-5957.2006.00651.x.
• Amir, E. and Livne, G. (2005). Accounting, valuation and duration of football player contracts. Journal of Business Finance and Accounting, 32(3-4), pp. 549–586. doi:10.1111/j.0306-686X.2005.00604.x.
• Amir, E., Lev, B. and Sougiannis, T. (2003). Do financial analysts get intangibles? European Accounting Review, 12(4), pp. 635–659. doi:10.1080/0963818032000141879.
• Amir, E., Kirschenheiter, M. and Willard, K. (2001). The aggregation and valuation of deferred Taxes. Review of Accounting Studies, 6(2-3), pp. 275–297.
• Amir, E. and Sougiannis, T. (1999). Analysts' Interpretation and Investors' Valuation of Tax Carryforwards. Contemporary Accounting Research, 16(1), pp. 1–33.
• Amir, E. and Benartzi, S. (1999). Accounting Recognition and the Determinants of Pension Asset Allocation. Journal of Accounting, Auditing & Finance, 14(3), pp. 321–343. doi:10.1177/0148558X9901400309.
• Amir, E. and Ganzach, Y. (1998). Overreaction and underreaction in analysts' forecasts. Journal of Economic Behavior and Organization, 37(3), pp. 333–347.
• Amir, E. and Benartzi, S. (1998). The expected rate of return on pension funds and asset allocation as predictors of portfolio performance. Accounting Review, 73(3), pp. 335–352.
• Swanson, E.P., Amir, E., Langli, J.C., Mittelstaedt, H.F. and Salter, S.B. (1997). AAA globalization initiatives subcommittee comment on IASC exposure draft E54: "Employee benefits". Accounting Horizons, 11(3), pp. 102–105.
• Amir, E., Kirschenheiter, M. and Willard, K. (1997). The valuation of deferred taxes. Contemporary Accounting Research, 14(4), pp. 597–622.
• Amir, E. and Ziv, A. (1997). Economic consequences of alternative adoption rules for new accounting standards. Contemporary Accounting Research, 14(3), pp. 543–568.
• Amir, E. and Ziv, A. (1997). Recognition, disclosure, or delay: Timing the adoption of SFAS no. 106. Journal of Accounting Research, 35(1), pp. 61–81.
• Amir, E., Swanson, E.P., Langli, J.C., Mittelstaedt, H.F. and Salter, S.B. (1997). "Employee Benefits" A Comment by a Subcommitee of the American Accounting Association's Globalization Initiatives Committee',. Accounting Horizons, 11(3), pp. 102–105.
• Abrahamson, E. and Amir, E. (1996). The information content of the president's letter to shareholders. Journal of Business Finance and Accounting, 23(8), pp. 1157–1182. doi:10.1111/j.1468-5957.1996.tb01163.x.
• Amir, E. and Livnat, J. (1996). Multiperiod analysis of adoption motives: The case of SFAS No. 106. Accounting Review, 71(4), pp. 539–553.
• Amir, E. (1996). The effect of accounting aggregation on the value-relevance of financial disclosures: The case of SFAS No. 106. Accounting Review, 71(4), pp. 573–590.
• Amir, E. and Lev, B. (1996). Value-relevance of nonfinancial information: The wireless communications industry. Journal of Accounting and Economics, 22(1-3), pp. 3–30.
• Amir, E. and Gordon, E.A. (1996). Firms’ Choice of Estimation Parameters: Empirical Evidence from SFAS No. 106. Journal of Accounting, Auditing & Finance, 11(3), pp. 427–448. doi:10.1177/0148558X9601100311.
• Amir, E. (1993). The Market Valuation of Accounting Information: The Case of Postretirement Benefits other than Pensions. Accounting Review, 68(4), pp. 703–724.
• Amir, E., Harris, T.S. and Venuti, E.K. (1993). A Comparison of the Value-Relevance of U.S. versus Non-U.S. GAAP Accounting Measures Using Form 20-F Reconciliations. Journal of Accounting Research, 31(Special issue: Studies on International Accounting), pp. 230–264.

Event/Conference

The Tel Aviv 6th International Conference in Accounting. (Conference) Tel Aviv University, Israel. (2012). Organising Committee.

Professor Eli Amir visits London Business School from Tel Aviv University’s Recanati Graduate School of Management, where he is Professor of Accounting and Chairman of the Accounting Department. 

  Until August 2012, he was a Professor at London Business School, and from 2000 until 2003 he was the Chairman of the Israel Accounting Standards Board. His research focuses on measuring the precision of information, the economic consequences of business corruption, and financial statement analysis. He has published articles in leading academic journals. Professor Amir teaches courses in financial accounting, advanced financial statement analysis, financial analysis of mergers and acquisitions and empirical research in accounting. He received his BA degree in Accounting and Economics from Tel Aviv University and his PhD in Business Administration from the University of California, Berkeley. He is also a certified public accountant in Israel.