Ross L. Watts

Ross L. Watts is the Erwin H. Schell Professor of Management, Emeritus and Professor of Accounting, Emeritus at the MIT Sloan School of Management. His book Positive Accounting Theory, coauthored with Jerold Zimmerman, continues to be used in accounting PhD programs more than 25 years since its publication. He has published extensively in leading accounting and finance journals and is a founding editor of the Journal of Accounting & Economics. Specializing in accounting and corporate governance, Watts investigates the relation between accounting’s roles in auditing, contracting, firm governance, financing, and financial reporting. He is a source for predictions of likely effects of proposed financial reporting standards.

Ross Watts is a Professor of Accounting at MIT, specializing in Accounting, Finance, and Economics. His research explores the theoretical and practical aspects of financial reporting, including the determinants of accounting standards, the relevance of financial information, and the role of conservatism in accounting. He investigates how corporate financial decisions, such as dividend policies and capital structure, are influenced by market conditions and managerial behavior. His work also examines the relationship between earnings and cash flows, the information content of dividends, and the impact of legal and regulatory environments on financial reporting. Watts' research contributes to understanding the interplay between accounting practices, corporate governance, and financial markets.