Faculty Profile

Ole-Kristian Hope

Adjunct Professor - Department of Accounting, Auditing and Business Analytics

Publications

Hope, Ole-Kristian; Wu, Han & Zhao, Wuyang (22)

Blockholder exit threats in the presence of private benefits of control

Review of accounting studies, 22(2), s. 873- 902. Doi: 10.1007/s11142-017-9394-2

Hope, Ole-Kristian & Wang, Jingjing (2018)

Management deception, big-bath accounting, and information asymmetry: Evidence from linguistic analysis

Accounting, Organizations and Society, 70(October), s. 33- 51. Doi: 10.1016/j.aos.2018.02.004

Accounting big baths are pervasive in practice. While big baths can improve the information environment and reduce information asymmetry, they can also degrade the information environment and obscure operating performance. In this study, we examine the role of management ethics. Specifically, we investigate whether managers’ truthfulness (or conversely, deceptiveness) affects how investors perceive big baths. Using linguistic analysis on earnings-conference calls to measure managerial deception and employing a difference-in-differences research design with propensity-score matching, we find that information asymmetry is significantly higher following big baths taken by deceptive CEOs, compared with big baths taken by less deceptive CEOs.

Akamah, Herita; Hope, Ole-Kristian & Thomas, Wayne B. (2018)

Tax havens and disclosure aggregation

Journal of International Business Studies, 49(1), s. 49- 69. Doi: 10.1057/s41267-017-0084-x

Hope, Ole-Kristian & Zhao, Wuyang (2017)

Market reactions to the closest peer firm?s analyst revisions

Accounting and Business Research, 48(4), s. 345- 372. Doi: 10.1080/00014788.2017.1407628

Prior analyst literature focuses on the impact of financial analysts on the firms they cover, and prior information-transfer literature concentrates on the externalities of information provided by management. This paper fills gaps in both streams of literature by examining the focal firm’s market reactions to the closest peer firm’s (identified by product similarity) analyst revisions. We find that the focal firm’s stock price reacts to the closest peer’s analyst revisions made by analysts who are not covering the focal firm. The focal firm’s cumulative abnormal return for a five-day window centered on the revision date is 0.54% higher if the peer firm’s analyst revision magnitude is in the top decile than if it is in the bottom decile. Cross-sectional tests show that the sensitivity of the focal firm’s market reactions to the peer firm’s revisions increases with the revision informativeness and the similarity between the focal firm and the peer firm. In addition, we find that focal firms do not react to peer firms’ revisions in industries with strong competition where the competitive effects cancel out the spillover effects. Finally, we find that the focal firm’s market reactions can predict its own future analyst revisions, suggesting that the reactions are at least partially rational.

Chen, Feng; Hope, Ole-Kristian, Li, Qinyuan & Wang, Xin (2017)

Flight to Quality in International Markets: Investors? Demand for Financial Reporting Quality during Political Uncertainty Events

Contemporary Accounting Research, 35(1), s. 117- 155. Doi: 10.1111/1911-3846.12355

We examine whether international equity mutual fund managers shift their portfolios toward stocks with higher financial reporting quality (FRQ) during periods of high political uncertainty. Our study is motivated by two primary factors. First, prior research shows evidence of fund managers’ “flight to quality” (e.g., to less risky securities) during periods of uncertainty. Second, recent theoretical research concludes that stocks with higher FRQ are assessed as less sensitive to systematic risk (such as political uncertainty). We employ national elections as exogenous increases in systematic risk in the local markets and accordingly use an international sample of mutual funds that focus on local markets. We find that mutual fund managers shift their equity holdings to stocks with higher FRQ during election periods when political uncertainty is higher. Such a flight‐to‐quality effect is less pronounced for elections with larger expected electoral margins in the pre‐election period (i.e., when the incumbent is more likely to win the election) and for countries with higher transactions costs. In contrast, the effect is more pronounced when governments have greater involvement in the local economy. Our inferences are robust to alternative proxies for political uncertainty and FRQ and to numerous other sensitivity analyses.

De Franco, Gus; Hope, Ole-Kristian & Lu, Haihao (2017)

Managerial ability and bank-loan pricing

Journal of Business Finance & Accounting, 44(9-10), s. 1315- 1337. Doi: 10.1111/jbfa.12267

Hope, Ole-Kristian; Hu, Danqi & Zhaoa, Wuyang (2017)

Third-party consequences of short-selling threats: The case of auditor behavior

Journal of Accounting & Economics, 63(2-3), s. 479- 498. Doi: 10.1016/j.jacceco.2016.09.006

Hope, Ole-Kristian; Thomas, Wayne B. & Vyas, Dushyantkumar (2017)

Stakeholder demand for accounting quality and economic usefulness of accounting in U.S. private firms

Journal of Accounting and Public Policy, 36(1) Doi: 10.1016/j.jaccpubpol.2016.11.004

Yiwei, Dou; Hope, Ole-Kristian, Thomas, Wayne B. & Zou, Youli (2016)

Individual Large Shareholders, Earnings Management, and Capital-Market Consequences

Journal of Business Finance & Accounting, 43(7-8), s. 872- 902. Doi: 10.1111/jbfa.12204

Hope, Ole-Kristian; Hu, Danqi & Lu, Hai (2016)

The benefits of specific risk-factor disclosures

Review of accounting studies, 21(4), s. 1005- 1045. Doi: 10.1007/s11142-016-9371-1

Hope, Ole-Kristian; Langli, John Christian & Thomas, Wayne B. (2012)

Agency conflicts and auditing in private firms

Accounting, Organizations and Society, 37(7), s. 500- 517. Doi: 10.1016/j.aos.2012.06.002

Hope, Ole-Kristian & Langli, John Christian (2010)

Auditor Independence in a Private Firm and Low Litigation Risk Setting

Accounting Review, 85(2), s. 573- 605. Doi: 10.2308/accr.2010.85.2.573

Che, Limei; Hope, Ole-Kristian & Langli, John Christian (2017)

Does the Big-4 Effect Exist in Private-Client Segment? Evidence from Audit-Partner – Auditee Pair Switches

[Academic lecture]. Ninth European Auditing Research Network Symposium 2017.

Che, Limei; Hope, Ole-Kristian & Langli, John Christian (2016)

Does the Big-4 Effect Exist? Evidence from Audit-Partner Switches

[Academic lecture]. NHH mini-conference.

Che, Limei; Hope, Ole-Kristian & Langli, John Christian (2016)

Does the Big-4 Effect Exist When Reputation and Litigation Risks are Low? Evidence from Audit-Partner – Auditee Pair Switches

[Academic lecture]. Research presentation at Umeå University.

Che, Limei; Hope, Ole-Kristian & Langli, John Christian (2016)

Does the Big-4 Effect Exist When Reputation and Litigation Risks are Low? Evidence from Audit-Partner – Auditee Pair Switches

[Academic lecture]. Research presentation.

Che, Limei; Hope, Ole-Kristian & Langli, John Christian (2016)

Does the Big-4 Effect Exist? Evidence from Audit-Partner Switches

[Academic lecture]. 39th European Accounting Association Annual Congress 2016.

Langli, John Christian; Hope, Ole-Kristian & Che, Limei (2016)

Does the Big-4 effect exist? Evidence from Audit-Partner Switches

[Academic lecture]. Workshop.

Hope, Ole-Kristian; Che, Limei & Langli, John Christian (2016)

Does the Big-4 Effect Exist when Reputation and Litigation Risks are Low? Evidence from Audit-Partner – Auditee Pair Switches

[Academic lecture]. 6th Workshop on Audit Quality.

Hope, Ole-Kristian; Langli, John Christian & Thomas, Wayne B. (2011)

Agency Conflicts and Auditing in Private Firms

[Academic lecture]. EARNet 2011.

Hope, Ole-Kristian & Langli, John Christian (2009)

Er høye honorarer for revisjon og rådgivning en trussel mot uavhengigheten?

[Article in business/trade/industry journal]. Praktisk økonomi og finans, 25(4), s. 55- 63.

Academic Degrees
Year Academic Department Degree
--N/A-- Norwegian School of Economics (NHH) Master of Science in Business
2001 Kellogg School of Management, Northwestern University PhD
Work Experience
Year Employer Job Title
2011 - Present Rotman School of Management, University of Toronto Professor
2007 - 2011 Rotman School of Management, University of Toronto Associate professor
2001 - 2007 Rotman School of Management, University of Toronto Assistant professor