BUSB 5201
Katherine Gunny's research focuses on the strategic use of accounting information by managers. She explores how and why managers create intentional differences between reported earnings and economic performance (i.e. earnings management). Managers can influence reported accounting numbers by changing the underlying operations of the firm (i.e. real earnings management) or by using the inherent discretion in GAAP (i.e. accrual earnings management) and her work examines both techniques. She, also, examines under which circumstances managers use earnings management opportunistically to the detriment of shareholders and, conversely, under what circumstances they exercise discretion consistent with shareholder value maximization.
Another related stream of research focuses on how regulators, auditors, and political activities impact the measurement of firm performance by influencing the menu of accounting policy choices available and the responsibilities of the audit profession. For example, Gunny examines how the creation of a new regulatory body to oversee auditors (i.e. the Public Company Accounting Oversight Board) impacts the important role auditors' play as monitors of reported accounting numbers.
Education
PhD Business, University of California Berkeley
MS Agricultural and Resource Economics, University of California Davis
BS Managerial Economics, University of California Davis
Areas of expertise
Financial Reporting and Capital Markets
Earnings Management
PCAOB
Auditing
Publications and presentations
Gunny, K., J. Mao, and J. Zhang. 2025. Group Audit Risk and Component Auditor Use. A Difference-in-Difference Analysis. Auditing: A Journal of Practice & Theory 44 (1): 73-103.
Barton, J., B. Burnett, K. Gunny, and B. Miller. Separating the probability of committing and detecting restatements: Evidence from auditor attributes and accounting quality. Management Science 70 (1): 32-53.
Burke, J. and K. Gunny. 2022. SEC comment letters and 10-K accounting and linguistic reporting complexity. Journal of Accounting, Auditing & Finance 39 (4): 1090-1120.
Baik, B., K. Gunny, B. Jung, and D. Park. 2022. Income smoothing through R&D management and earnings informativeness. The Accounting Review 97 (3): 25-49.
Gunny, K. and J. Hermis. 2020. How busyness influences SEC compliance activities: Evidence from the filing review process and comment letters. Contemporary Accounting Research 37 (1): 7-32.
Chen, J., M. Cussatt, and K. Gunny. 2020. When are outside directors more effective monitors? Evidence from real activities manipulation. Journal of Accounting, Auditing & Finance 35 (1): 26-52.
Burnett, B., H. Chen, and K. Gunny. 2018. Auditor-provided lobbying service and audit quality. Journal of Accounting, Auditing & Finance. 33 (3): 402-434.
Abbott, L., K. Gunny, and T. Pollard. 2017. The Impact of litigation risk on auditor pricing behavior: Evidence from reverse mergers. Contemporary Accounting Research 34 (2): 1103-1127.
Gunny, K. and T. Zhang. 2014. Do managers use meeting analyst forecasts to signal private information? Evidence from patent citations. Journal of Business Finance and Accounting 41 (7): 950-973.
Gunny, K., J. Jacob, and B. Jorgensen. 2013. Implications of the integral approach and earnings management for alternate annual reporting periods. Review of Accounting Studies 18 (3): 868-891.
Abbott, L., K. Gunny, and T. Zhang. 2013. When the PCAOB talks, who listens? Evidence from stakeholder reaction to GAAP-deficient PCAOB inspection reports of small auditors. Auditing: A Journal of Practice & Theory 32 (2): 1-31.
Gunny, K. and T. Zhang. 2013. PCAOB inspection reports and audit quality. Journal of Accounting and Public Policy 32 (2): 136-160.
Eldenburg, L., K. Gunny, K. Hee, and N. Soderstrom. 2011. Earnings management using real activities: Evidence from nonprofit hospitals. The Accounting Review 86 (5): 1605-1630.
Gunny, K. 2010. The relation between earnings management using real activities manipulation and future performance: Evidence from meeting earnings benchmarks. Contemporary Accounting Research 27 (3): 855-888.
Awards
CU Denver Business School
- Outstanding Service Award (2025)
- Outstanding Teacher Award (2024)
- Outstanding Mentor Award (2024)
- Outstanding Research Award (2023)
- Dean’s Research Scholar (2018-2019)
Provost's Faculty Achievement Award, University of Colorado Boulder (2012)
EKS&H Research Award, University of Colorado Boulder (2012)
Affiliations
Associate Editor: Journal of Accounting, Auditing & Finance (2019-present)
Editorial Review Board: Journal of Accounting & Public Policy (2023-present)
