203.432.5977

Williams Brothers Professor of Accounting and Finance

Professor Thomas focuses on the relation between accounting information and stock prices. Insights recently developed in this area that suggest fundamental links between accounting numbers and value form the basis of much of his recent teaching and research. He has written cases and other teaching material for the course he teaches on equity valuation using financial statements. Differences between stock prices and fundamental value provide the basis for his examination of various extant stock trading strategies and the development of new strategies. Before joining the faculty at Yale, he was the Ernst & Young Professor of Accounting and Finance at Columbia Business School.

Achievements and Awards
Chazen International Research Prize, 2002
Finalist, Smith Breeden Prize of the American Finance Association, 2001
First prize, IBES Competition for International Valuation Research, 1999
Dean's Award for Teaching Excellence, 1995
AICPA Notable Contributions to Accounting Literature Award, 1993
Deloitte Haskins and Sells Doctoral Fellow, 1982-1984

Editorships
Associate Editor:
Accounting Horizons
Journal of Accounting, Auditing, and Finance
The Journal of Accounting and Economics
Review of Quantitative Finance and Accounting
Editorial Board:
Accounting Review
Contemporary Accounting Research
Journal of Accounting, Auditing, and Finance
Review of Quantitative Finance and Accounting

Selected Articles
"Cash Flow is King? Comparing Valuations Based on Cash Flow Versus Earnings Multiples" (with J. Liu and D. Nissim), Financial Analysts Journal, Vol. 63, No. 2, 56-68, March/April, 2007

"Accounting for Employee Stock Options" (with R. Mathur and M. Kirschenheiter), Accounting Horizons, Vol. 18, No. 2, 135-56, June, 2004

"Inventory Changes and Future Returns" (with H. Zhang), Review of Accounting Studies, Vol. 7, No. 2-3, 163-87, June-September, 2002

"Valuation Using Multiples" (with J. Liu and D. Nissim) Journal of Accounting Research, Vol. 40, No. 1, 137-72, March, 2002

"Equity Premia as Low as Three Percent? Evidence from Analysts’ Earnings Forecasts for Domestic and International Stock Markets" (with J. Claus), Journal of Finance, Vol. 55, No.5, 1629-66, October, 2001

"Earnings Management under the AMT? The Case Against" (with W. Choi and J. Gramlich), Contemporary Accounting Research, Vol. 18, No. 4, 571-613, Winter, 2001

Working Papers
"Tax Income Momentum" (with F. Zhang)

"Overreaction to Intra-Industry Information Transfers" (with F. Zhang)

"Don’t Fight the Fed Model"

"On the Informational Usefulness of R&D Capitalization and Amortization" (with D. Nissim and B. Lev)

"Nominal Growth in Corporate Profits Is Unrelated to Inflation" (with F. Zhang)

Education
PhD University of Michigan, 1984
MBA ICMS, 1977
B. Tech. IIT, 1974