- 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
Sooy, M., 2023, "The Compliance Consequences of Fault Assignment and Sanction Strength in Sanctions", Behavioral Research in Accounting, September 35(2): 131 - 152. Abstract:
Regulators rely heavily on “no-fault” settlements in their enforcement, where targets avoid costly litigation by accepting sanctions without admitting or denying fault. Considerable public debate surrounds the issue, but prior research has typically focused on financial dimensions of sanctions such as the magnitude of fines. I conduct an economic experiment where individuals face a costly compliance choice in the presence of sanctions that may either be greater than or less than the benefits of violating and may also require admission of fault. I observe that compliance quality is greater when sanctions assign fault. I also observe that, relative to strong sanctions, the frequency of compliance decreases under weak no-fault sanctions but does not decrease under weak fault sanctions. Lastly, I observe that non-decision-making participants struggle with the task of anticipating compliance, believing that compliance quality will increase in sanction strength but not fault although the opposite is true.
Data Availability: Data are available on request from the author.
Link(s) to publication:
Barradale, N. J.; Goodson, B.; Sooy, M., 2022, "Does Accounting Measurement Influence Market Efficiency? A Laboratory Market Perspective", Behavioral Research in Accounting, September 34(2) 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:
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
- “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