Faculty Member

Dr. Derrald Stice

Job Title

Accounting and Law
Associate Professor

Professor Derrald Stice joined HKU Business School in July 2019. Previous to joining HKU, Derrald was a professor in the accounting department at HKUST for eight years. Derrald’s main research expertise relates to how accounting is used in the capital markets, with a particular emphasis on the debt markets. His research has been published in top accounting and finance journals and has been cited in The Wall Street Journal and Bloomberg. He has presented his research at many universities in many countries around the world. In addition to his research focus, Derrald has taught various graduate courses in accounting in Hong Kong, China, Saudi Arabia, and Russia and has provided corporate training for employees at Goldman Sachs.

Academic & Professional Qualification
University of North Carolina at Chapel Hill, Kenan-Flagler Business School
Ph.D., Business Administration (Accounting) – 2011
Brigham Young University, Marriott School of Management
B.S. in Accounting, Minor: Economics – 2006

Financial and Managerial Accounting – Undergraduate, Master’s, and MBA Levels

Research Interest
The use of accounting as a source of information in capital markets, with a particular emphasis on the debt markets. Areas of interest: debt contracting, debt covenants, auditing, financial analysts, and media.

Selected Publications

“The Information Role of Audit Opinions in Debt Contracting” Journal of Accounting and Economics (2016) 61: 121-144 (with Peter Chen, Shaohua He, and Zhiming Ma).

“Do Banks Care About Analysts’ Forecasts When Designing Loan Contracts?” Journal of Business Finance and Accounting (2018) 45: 625-650 (with Josh Coyne).

“The Market Response to Implied Debt Covenant Violations” Journal of Business Finance and Accounting (2018) 45: 1,195-1,223 (Dissertation).

“Auditor Choice and Information Asymmetry: Evidence from International Syndicated Loans” Accounting and Business Research (2019) 49: 365-399 (with Zhiming Ma and Rencheng Wang).

“The Effect of Bank Monitoring on Public Bond Terms” Journal of Financial Economics (2019) 133: 379-396 (with Zhiming Ma and Chris Williams).

Working Papers

“The Power of Numbers: Base-Ten Threshold Effects in Reported Revenue” Contemporary Accounting Research (2022) Forthcoming (with Earl K. Stice, Han Stice, and Lorien Stice-Lawrence).
“Firm Innovation and Covenant Tightness” Review of Accounting Studies (2022) Forthcoming (with Zhiming Ma, Kirill E. Novoselov, and Yue Zhang).
“The Effect of Individual Auditor Quality on Audit Outcomes: Opening the Black Box of Audit Quality” Managerial Auditing Journal (2022) Forthcoming (with Han Stice and Roger White).
“Strategic Disclosure and Debt Covenant Violation” Journal of Management Accounting Research (2022) Forthcoming (with Thomas Bourveau and Rencheng Wang).
“What’s My Style? Supply-Side Determinants of Debt Covenant Inclusion” Journal of Business Finance and Accounting (2022) 49: 461-490 (with Zhiming Ma and Christopher Williams) – Presented at the 2021 JBFA Capital Markets Conference.
“Stop the Presses! Or Wait, We Might Need Them: Firm Responses to Local Newspaper Closures and Layoffs” Journal of Corporate Finance (2021) 69: 102035 (with Min Kim, Han Stice, and Roger M. White).

Awards and Honours
Winner: Best 10 Lecturers on Campus, HKUST, 2012
Winner: Franklin Prize for Teaching Excellence 2015
Dean’s Letter of Teaching Recognition HKUST (2012-2018)
Doctoral Fellowship, Kenan-Flagler Business School (2006-2010)
Residence Master of Hall VII – HKUST (July 2015 – June 2019)
Winner: IMBA Teaching Award 2020-21, HKU-Fudan University