- Business Ethics
- Behavioral Economics
- Financial Regulation
- Managerial accounting
- Organizational Hierarchies
- Social Network Analysis
- Market Bubbles and Crashes. CPA Ontario. April 2021
- The Beer Store loss grows to $51 million amid competition, COVID. Toronto Star. April 2021.
- Tax breaks may have been at the heart of dead deal for Ekati mine. CBC. October 2020
- The Beer Store lost $47 million last year as supermarket competition ramped up. Toronto Star. May 2020
- More Canadians are filing for insolvency than we’ve seen since the financial crisis. What’s going on?. Toronto Star. January 2020.
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Matthew Sooy is an Assistant Professor at the Ivey Business School. He received his PhD in Business Administration (Accounting concentration) from the University of Kentucky, and earned an MBA (Finance and Decision Science concentrations) from Emory University. Prior to returning to school, Matt worked for KPMG and has also worked for several start-up companies.
Matt’s recent research utilizes behavioral economic methods to investigate how dimensions of financial regulations and their enforcement influence managers’ compliance. Matt also has research investigating how hierarchy and social status influence managers’ financial decision-making.
- HBA1: Financial Fundamentals
- HBA2: Management Accounting and Control
- PhD, Accounting, University of Kentucky
- MBA, Finance and Decision Science, Emory University
- BS, Accounting, Georgia State University
Recent Refereed Articles
Barradale, N. J.; Goodson, B.; Sooy, M., 2022, "Does Accounting Measurement Influence Market Efficiency? A Laboratory Market Perspective", Behavioral Research in Accounting Abstract: Using laboratory markets where accounting regimes can be directly compared with equivalent economic parameters, we test whether and how two different accounting measurement bases – historical cost (HC) and mark-to-market (MTM) – influence trader perceptions and asset mispricing. Our results show that traders perceive otherwise equivalent assets differently by regime, consistent with accounting regimes imposing differential information processing costs. In the MTM regime, traders integrate market price information to a greater extent and integrate asset fundamental information to a lesser extent. We also observe that traders in the MTM regime express prospective preferences for information about future market prices, but in HC prefer information about future dividends. These individual-level effects correspond with greater market-level mispricing/bubbles under MTM. Our results suggest that accounting regimes can, on their own, contribute to price bubbles and their subsequent collapse.
Link(s) to publication:
Bundy, S.; Mohapatra, P.; Stone, D.; Sooy, M., (Forthcoming), "Meritocracy or Aristocracy? The Role of Pedigree in the Market for Accounting New Faculty Candidates", Issues in Accounting Education Abstract: This paper investigates the joint and complex influences of elitism and merit in the hiring of new accounting faculty. Building on research showing that search committees value pedigree in hiring new faculty, we theorize both aristocratic (e.g., accessing or reinforcing elite networks) and meritocratic (e.g., signaling stronger future research potential) influences on the hiring of new accounting faculty. Using curriculum vitae from 381 Accounting Ph.D. Rookie Recruiting and Research Camps, we examine whether candidates graduating from elite accounting institutions place disproportionately higher than do their non-elite peers. Results suggest that elite pedigree predicts placement rank among candidates without favorable publication outcomes at top journals (e.g. acceptance or invitation to resubmit) but not among candidates with favorable publication outcomes. Favorable publication outcomes at other journals is unrelated to placement rank. The results suggest joint and complex aristocratic (elite-based) and meritocratic (productivity-based) influences in new accounting faculty hiring. We also find evidence of declining diversity, in both research topics and methods, in accounting scholarship.
Brown, J. B.; Fisher, J.; Sooy, M.; Sprinkle, G., 2014, "The Effect of Rankings on Honesty in Budget Reporting", Accounting Organizations and Society, May 39(4): 237 - 246. Abstract: We conduct an experiment to investigate the effect of rankings, which are pervasive in practice, on the honesty of managers’ budget reports, which is important for sound decision making in organizations. Participants in our experiment are ranked in one of four ways: (1) firm profit, (2) own compensation, (3) both firm profit and own compensation, and (4) randomly, which serves as our baseline condition. None of the rankings affect participants’ remuneration. Compared to our baseline (random rankings) setting, where participants indeed exhibit honesty concerns, we find that rankings based on firm profit significantly increase honesty and that rankings based on own compensation significantly decrease honesty. Participants who received both rankings were significantly more honest than participants in the own compensation rankings condition. We did not, however, find significant differences in honesty between the both rankings and firm profit rankings conditions. As such, participants in the both rankings condition seemed to focus more on the firm profit metric than on the financially congruent own compensation metric. We also find that our results are stable across periods, suggesting that the effects of rankings neither increased nor dissipated over time. We discuss the contributions of our study and concomitant findings to accounting research and practice.
Link(s) to publication:
Work in Progress
- "The Compliance Consequences of Fault Assignment in Sanctions”, Revise and Resubmit, Journal of Business Ethics
- “Alternative Accounting Measurement Bases and Price Efficiency In Laboratory Asset Markets: Does Marking to Market Matter?”, with Nigel J. Barradale of Barradale Asset Management, and Brian Goodson of University Clemson University, Revise and Resubmit, Behavioral Research in Accounting
- “Does Targeting Firms for Managers’ Transgressions Increase or Decrease Accountability? The Effect of Sanction Target on Managerial Compliance”, with K. Huo of Ivey Business School
- “The Asset Volatility Effects of Uncertain Tone in Credit Markets: Evidence from Credit Default Swaps”, with H. Doshi of University of Houston, S. Ramani and S. Patel of Univ. of Western Ontario
Honours & Awards
- CFI JELF Grant – Interdisciplinary Behavioural Lab Funding (2020)
- SSHRC Insight Grant (Primary Investigator) – “Alternative Accounting Measurement Bases and Price Efficiency In Laboratory Asset Markets: Does Marking to Market Matter?” (2018)
- AAA ABO Outstanding Emerging Scholar Award (2016)
- KPMG, State & Local Tax
- Mindspring / Earthlink