Leslie Hodder
Professor of Accounting | Indiana University, Kelley School of Business
Bloomington, IN, UNITED STATES
Leslie Hodder's research focuses on financial institutions and financial instruments.
Secondary Titles (1)
- Dean’s Research Professorship
Biography
Leslie Hodder left Stanford University to join the IU faculty in 2003. Since arriving at Kelley she has taught in every program offered at the Kelley School of Business at Indiana University: Undergraduate, Graduate Accounting, MBA, and Ph.D.
Hodder hopes that by incorporating unstructured cases and emphasizing uncertainty, she creates an environment within the classroom that accentuates the process of understanding.
Through the years, Hodder has earned numerous accolades for her teaching performance, curriculum development, research contributions, and advisory work. For instance, she received the Alpha Kappa Psi Teacher’s Excellence Award, the Kelley School of Business Innovative Teaching Award, the Kelley School of Business Outstanding Research Award, and the American Accounting Association’s Wildman Medal (for research likely to contribute to significant advancements in accounting practice).
Hodder’s vita reflects 14 peer-reviewed, published articles, 11 of which are published in top-tier accounting journals. The primary objective of her program of research relates to accounting measurements and how they reflect the qualitative characteristics of information described in accounting standard setters’ conceptual frameworks. Much of her research has focused on current financial-reporting issues confronting standard setters, in contexts that inform conceptual accounting debates. Because of their measurement complexity and significance to the economy, Hodder’s research generally focuses on financial institutions and financial instruments.
Having served for three years as an editor for The Accounting Review, Hodder has been asked to chair educational committees for the Financial Accounting Standards Board. “I love accounting because it is both theoretical and practical,” says Hodder, whose favorite places in nature, science, and accounting are those transition zones where one thing blends into another. “[I appreciate] where data analytics becomes accounting, where managerial accounting becomes financial, where undergraduates become graduate students, and where students become practitioners.”
Hodder and her spouse have four children and two cats, all of whom are accomplished and appear in class materials from time to time. Although family and work keep her busy, Hodder’s hobbies include travel and gardening. “I’ve learned to balance these hobbies by traveling for work and learning how to install automated drip irrigation,” says Hodder.
Industry Expertise (5)
Accounting
Education/Learning
Research
Capital Markets
Banking
Areas of Expertise (10)
Financial Accounting
Accounting Theory
Research Methods
Bank Accounting
Risk Measurement and Disclosure in Financial Institutions
Valuation
Measurement and Disclosure Issues Related to Financial Instruments
Market Risk
Capital Structure
Credit Risk and Organizational Form
Accomplishments (4)
Innovative Teaching Award (professional)
2013 Awarded by the Kelley School of Business at Indiana University
Deloitte Foundation Wildman Medal Award (professional)
2009 Awarded by the American Accounting Association
Outstanding Researcher Award (professional)
2008 Awarded by the Kelley School of Business at Indiana University
Outstanding Faculty Advisor Award (professional)
2008 Awarded by the Student Accounting Society and Beta Alpha Psi
Education (3)
Graduate School of Business, University of Texas at Austin: Ph.D., Accounting 2001
Anderson School of Management, University of New Mexico: M.B.A/M.Acc., Information Systems 1988
Anderson School of Management, University of New Mexico: B.B.A 1984
Articles (5)
Agency Problems, Accounting Slack, and Banks’ Response to Proposed Reporting of Loan Fair Values
Accounting, Organizations and Society
2014 We investigate the determinants of bank representatives’ responses to the United States Financial Accounting Standard Board’s 2010 Exposure Draft that proposes fair value measurement for most financial instruments. Over 85% of the 2971 comment letters were received from bank representatives, with most bank-affiliated letters addressing—and opposing—one issue: fair value measurement of loans. The Exposure Draft proposes that companies report both fair value and amortized cost measures for loans; thus, the proposal should result in ...
Financial Reporting for Employee Stock Options: Liabilities or Equity?
Review of Accounting Studies
2013 This study seeks to determine whether employee stock options share key characteristics of liabilities or equity. Consistent with warrant pricing theory, we find that common equity risk and expected return are negatively associated with the extent to which a firm has outstanding employee stock options, which is opposite to the association for liabilities. We also find the following. (1) The association is positive for firms that reprice options and less negative for firms that have options with longer remaining terms to maturity, which indicates that some employee stock options ...
Response to the SEC Release: Acceptance from Foreign Private Issuers of Financial Statements Prepared in Accordance with International Financial Reporting Standards ...
American Accounting Association
2008 The Financial Reporting Policy Committee of the Financial Accounting and Reporting Section of the American Accounting Association responded to the SEC's July 13, 2007 proposal to accept financial statements prepared in accordance with International Financial Reporting Standards (IFRS) from foreign-private issuers without reconciliation to U.S. GAAP (the SEC subsequently voted in favor of the proposal on November 15, 2007). Our commentary summarizes and interprets relevant academic research. Our main findings are ...
Fair Value Accounting for Liabilities and Own Credit Risk
The Accounting Review
2008 We find that equity returns associated with credit risk changes are attenuated by the debt value effect of the credit risk changes, as Merton (1974) predicts. We find that the relation between credit risk changes and equity returns is significantly less negative for firms with more debt—controlling for asset value changes, credit risk increases (decreases) are associated with equity value increases (decreases). This result obtains across credit risk levels. The relation is associated with changes in both expected cash flows and systematic risk, as reflected in analyst earnings ...
Internal Control Weaknesses and Information Uncertainty
The Accounting Review
2008 We analyze a sample of 330 firms making unaudited disclosures required by Section 302 and 383 firms making audited disclosures required by Section 404 of the Sarbanes‐Oxley Act. We find that Section 302 disclosures are associated with negative announcement abnormal returns of −1.8 percent, and that firms experience an abnormal increase in equity cost of capital of 68 basis points. We conclude that Section 302 disclosures are informative and point to lower credibility of disclosing firms' financial reporting. In contrast, we find that Section 404 disclosures have ...
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