Theodore (Ted) Rodgers joined Goizueta Business School in May 2010. Previously he served on the faculty of the Moore School of Business, University of South Carolina. His teaching interests are in managerial and cost accounting, as well as auditing and financial accounting.
Ted’s research interests include auditor independence, market reactions to audit and managerial corporate disclosures, and corporate governance reputation formation. His primary methodological interests are in experimental economics, behavioral economics, and judgment and decision-making as they relate to accounting and auditing issues.
Areas of Expertise (2)
University of Arizona: PhD, Accounting 2006
Dissertation: Governance reputation and the market reaction to the auditor switching / retention decision
Committee Chairperson: Jeffrey W. Schatzberg
Committee Members: William L. Felix, Jr., William S. Waller and Martin Dufwenberg
Middle Tennessee State University: BS, Psychology 1994
Media Appearances (1)
How Skill Development will Catapult Your Career
“The mathematical processes can’t be compiled without a decision maker,” says Theodore Rodgers, assistant professor in the practice of accounting. “By way of analogy, a calculator can find the square root of a number, but which number should be used is made at the human level. Further, the financial statements, as well as the information expressed by them, follow a set of generally agreed upon rules that allow for a tremendous amount of human judgment. Recognizing revenue and recording costs and cash flows are often based on subjective decision criteria made by individuals.”
Employing both experimental market and archival research designs, we examine whether the association between announcement period stock returns and contemporaneous news is influenced by previously disclosed earnings news. Our primary conclusion is that investors' response to the earnings surprise (actual earnings less the last forecast of the quarter) is conditional on the sign of prior earnings news (i.e., the forecast revision). We develop and test predictions based on behavioral theories of how investors will react to a series of earnings information. Our results suggest that the market's response to sequential analysts' forecasts is consistent with the application of an end-of-sequence (EoS) process resulting in a primacy effect.
In this study, we examine whether an accounting choice that firms make for external financial reporting purposes influences the selling prices that managers seek to obtain when they dispose of used capital assets. From a normative perspective, managers should obtain the highest possible selling prices for used capital assets regardless of the firm’s depreciation method choice. However, theory predicts that depreciation method-induced differences in accounting book values will cause managers to systematically deviate from this normative prescription. Using multiple contexts, methodologies, and participant groups, we consistently find that managers sell used capital assets that have been depreciated using accelerated depreciation for lower prices than identical used capital assets that have been depreciated using straight-line depreciation. This effect even endures in the presence of fair value information about the asset being sold. We also provide theory-consistent evidence that depreciation method-induced differences in accounting book values influence managers’ asset selling price decisions because of the mental accounting process that they employ. Our study has economic efficiency implications for an array of situations in which depreciable assets are commonly sold.