Areas of Expertise (4)
Lisa Koonce holds the Deloitte and Touche Endowed Chair in Accounting (the No. 1-ranked accounting department in the country at both the undergraduate and graduate levels for many years in a row, according to U.S. News and World Report).
Koonce's research and teaching interests include the judgment and decision making implications of financial reporting. She has won an astonishing array of teaching excellence awards--both in number and in quality-- from McCombs, The University of Texas, and UT-System.
Koonce is a prolific financial accounting researcher, having published more than 40 peer-reviewed articles in the leading academic accounting journals such as The Accounting Review, Journal of Accounting Research, and Accounting, Organizations and Society. She has also held editorial positions for the same journals, as well as for the Journal of Behavioral Finance, Accounting Horizons, and Contemporary Accounting Research.
She has won several research awards from the American Accounting Association and the McCombs School of Business.
University of Illinois at Urbana-Champaign: Ph.D., Accounting 1990
University of Illinois at Urbana-Champaign: M.A.S, Accounting 1982
Southern Illinois University: B.S.B.A., Accounting 1981
Media Appearances (6)
US News & World college rankings make unfair comparisons
The Daiy Texan
“The rankings are a great source of pride for me, personally, and the other professors in my department,” said Lisa Koonce, a professor in McCombs’s first-ranked accounting program. “It means we have done a great job and are being recognized for it.”
Rankings are also a self-fulfilling prophecy, as in the case of the accounting department, where the best students choose to attend the best institutions.
Accounting Faculty Honored at AAA Annual Meeting
McCombs Today online
McCombs School of Business faculty shined at this year's American Accounting Association's (AAA) annual meeting, held in Atlanta, Ga. Professors Bill Kinney, Lisa Koonce, John Robinson, and Lillian Mills were all honored for their achievements in accounting education and research.
The Texas 10: Reuben McDaniel and Lisa Koonce
Growing up in a small town in Southern Illinois, Lisa Koonce never thought she would attend college, let alone become a professor. She assumed she would be a secretary. “It’s surprising to me still, at this point in my life, that I’m actually a university professor,” Koonce says. “People from my town didn’t do that sort of thing.” Today, Koonce is the Deloitte and Touche Chair in Accounting at UT, where she has taught for 22 years and she’s earned a number of awards, including The University of Texas System Regents’ Teaching Award.
How Investors Make Decisions
Texas Enterprise | Big Ideas in Business online
Koonce examines how investors use accounting information, especially when that use is outside of normal expectations. Her expertise, behavioral accounting, is part of an emerging research discipline that combines psychology with economics.
Fair-value Accounting: A Better Reflection of Reality
McCombs Today online
Koonce argues that fair-value accounting practices did not exacerbate the financial crisis (2007-09) as some critics have contended.
Professor Lisa Koonce: Teacher, Mentor, Guide
McCombs Today online
This article shows Koonce as an excellent teacher and powerhouse researcher, as is reflected in her colleagues' and students' quotes and in her many awards over 19 years.
Listing of top scholarly works by Lisa Koonce.
The provision of examples as implementation guidance is pervasive in accounting standards. Prior research has established that preparers engage in “example‐based reasoning,” a tendency to favor the accounting treatment in an example, even when the example does not exactly match the transaction at hand. In this paper, we investigate whether fact‐weighting guidance counteracts this tendency.
In this paper, we experimentally test whether the features of hybrid instruments affect the credit‐related judgments of experienced finance professionals, even when the hybrid instruments are already classified as liabilities or equity. Our results suggest that getting the classification right is not of primary importance for these experienced users, as they largely rely on the underlying features of the instrument to make their judgments.
Prior research indicates that a firm's use of derivatives to manage business risks is viewed favorably by investors. However, these studies do not consider a potentially key factor in this setting—namely, the typical behavior (or norms) regarding derivatives by other firms in the industry or the firm itself. In this paper, we report the results of multiple experiments that test whether norms are influential in affecting investors’ evaluations of firms’ derivatives choices.
We conduct a series of related experiments within the context of compound financial instruments to investigate whether managers' preferences follow the predictions of mental accounting theory; specifically, that presentation preferences vary as a function of the sign and relative magnitude of the income statement items. Results reveal that managers' disaggregation preferences reflect mental accounting.
Via experiments set within the fair value context, Koonce shows that users do not view relevance and reliability as independent constructs. These findings are important because inappropriate assessments of relevance can influence firm valuation.
This research generally shows that companies' retractions and corrections of a previous erroneous voluntary disclosure have unexpected effects on investor judgment.
Koonce research tests if investors' views about fair value are contingent on whether the financial instrument in question is an asset or liability, whether fair values produce gains or losses, and whether the item will or will not be sold/settled soon.
The purpose of this paper is to review key theories from psychology that pertain to causal reasoning and then to identify how these theories can be successfully used by behavioral researchers interested in financial reporting and voluntary disclosure.
This research shows that investors rely on an earnings measure only when it is consistent over time. It also shows that investors believe earnings trend and benchmark performance both provide information about a firm's future prospects and management's credibility.