Seminar by Prof. Partha Mohanram, University of Toronto

06 April, 2026, Bengaluru: The Office of Research and Publications (R&P) will host a seminar on, ‘Seeing Through the Fog: Financial Statement Disaggregation and Managerial Oversight’, to be led by Prof. Partha Mohanram, Finance and Accounting area, Rotman School of Management, University of Toronto, at 12.00 PM in Classroom P-22, on 7 April 2026.

Abstract:
The role of financial information disaggregation in contracting remains underexplored. Leveraging a regulatory change in China requiring firms to disclose R&D expenses as a separate line item rather than aggregating them under administrative expenses, this study examines whether such disaggregation enhances external monitoring of managerial behavior. Using a difference-in-differences design, the findings show that firms more affected by the rule experience a significant decline in abnormal executive compensation and perks embedded within administrative expenses.

The effect is stronger in firms with robust external monitoring, less sophisticated investors, and higher pre-reform administrative expenses, as well as in non-state-owned enterprises. The study also finds that abnormal administrative expenses are priced more negatively and become less sticky post-reform. Overall, the findings highlight the role of disaggregated financial information in strengthening corporate governance and improving resource allocation efficiency.

Speaker Profile:
Prof. Partha Mohanram is the John H. Watson Chair in Value Investing at the University of Toronto. His research focuses on financial statement analysis, valuation, executive compensation, and, more recently, artificial intelligence and machine learning. He has served as Editor-in-Chief of Contemporary Accounting Research and sits on the editorial boards of leading journals.

He has received multiple research and teaching awards, including recognition from the Canadian Academic Accounting Association and the American Accounting Association. He earned his PhD from Harvard University, an MBA from IIM Ahmedabad, and a B.Tech from IIT Madras.

Professor Mohanram holds the prestigious Chartered Professional Accountant (CPA-CGA) designation and is also a cerrtified board director (ICD.D). He currently serves on the board of the Canadian Academic Accounting Association (CAAA) and previously served on the board of CGA Ontario (2012-2014).                                                               
Webpage Link: https://www.rotman.utoronto.ca/the-rotman-experience/our-community/people/mohanram-partha-sarathy/