Photo of Wayne Guay

Wayne Guay

Yageo Professor

Professor of Accounting

Research Interests: executive compensation and incentives, executive stock holdings and trading behavior, corporate governance, financial reporting quality, the role of financial transparency in governance and contracting

Links: CV

Contact Information

Address: 1329 Steinberg Hall-Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104-6365
Office: (215) 898-7775
Office Fax: (215) 573-2054


Professor Guay’s research focuses on the design of executive compensation contracts, stock-based incentives, corporate governance, financial reporting quality, the corporate information environment, firm valuation. His articles have appeared in Journal of Accounting & Economics, Journal of Accounting Research, Accounting Review, Journal of Financial Economics, Journal of Finance, American Economic Review, Michigan Law Review, and Economic Policy Review. His research on stock option accounting and valuation was selected by the Financial Executive Research Foundation as the 2002 Article of the Year in The Accounting Review. He currently serves as an editor of the Journal of Accounting & Economics.

He has consulted with a wide range of companies, and provided expert testimony in a variety of high-profile litigation matters. His consulting and testimony focuses on design of executive compensation and incentives, corporate governance, employee stock option valuation, insider trading, firm valuation and financial statement analysis.

Professor Guay teaches the Core MBA Course on financial accounting. He received a PhD in Accounting from the Simon School of Business at the University of Rochester in 1998.


  • Karthik Balakrishnan, Jennifer Blouin, Wayne Guay (Work In Progress), Does Tax Aggressiveness Reduce Financial Reporting Transparency?.
  • Christopher Armstrong, John Core, Wayne Guay (Working), Why do CEOs hold so much unconstrained equity?.
  • Wayne Guay, Daniel Taylor, Liang (Jason) Xiao (Working), Adapt or Perish: Evidence of CEO Adaptability to Industry Shocks.
  • Wayne Guay, Robert E. Verrecchia (Working), Conservative Disclosure.
  • John Core, Wayne Guay (Working), The Other Side of the Trade-Off: The Impact of Risk on Executive Compensation: A Revised Comment.
  • John Core, Wayne Guay (Working), When are Executive Compensation and Incentives Appropriately Measured by Their Market Values?.
  • Christopher Armstrong, John Core, Wayne Guay (2014), Do independent directors cause Improvements in Firm Transparency? , Journal of Financial Economics, 113 (3), 383 - 403.  Abstract
  • Wayne Guay, S.P. Kothari, Susan Shu (2011), Properties of Implied Cost of Capital Using Analysts' Forecasts, Australian Journal of Management, 36, 125 - 149.  Abstract
  • Martin Conyon, John Core, Wayne Guay (2011), Are US CEOs Paid More Than UK CEOs? Inferences From Risk-Adjusted Pay?, Review of Financial Studies, 24, 402 - 438.  Abstract
  • Christopher Armstrong, Wayne Guay, Joseph Weber (2010), The Role of Information and Financial Reporting in Corporate Governance and Debt Contracting, Journal of Accounting & Economics, 50, 179 - 234.  Abstract
  • Wayne Guay, ""Is There a Case for Regulating Executive Pay in the Financial Services Industry?"". In After the Crash: The Future of Finance, edited by John Core, (2010).
  • Jennifer Blouin, John Core, Wayne Guay (2010), Have the tax benefits of debt been overestimated?, Journal of Financial Economics, (November): 195-213.  Abstract
  • John Core, Wayne Guay (2010), Is CEO Pay Too High and Are Incentives Too Low: A Wealth-Based Contracting Framework, Academy of Management Perspectives, 24, 5 - 19.  Abstract
  • Brian Bushee, John Core, Wayne Guay, Sophia J.W. Hamm (2010), The Role of the Business Press as an Information Intermediary, Journal of Accounting Research, 48, 1 - 19.  Abstract
  • John Core, Wayne Guay, Rodrigo Verdi (2008), Is Accruals Quality a Priced Risk Factor?, Journal of Accounting and Economics, 46, 2 - 22.  Abstract
  • John Core, Wayne Guay, David Larcker (2008), The Power of the Pen and Executive Compensation, Journal of Financial Economics, 88, 1 - 25.
  • Wayne Guay (2008), Conservative Financial Reporting, Debt Covenants, and the Agency Costs of Debt, Journal of Accounting & Economics, 45, 175 - 180.  Abstract
  • Wayne Guay (2008), Discussion of Accounting Discretion, Corporate Governance, and Firm Performance, Contemporary Accounting Research, 25, 407 - 413.  Abstract
  • John Core, Wayne Guay, Rodrigo Verdi (2006), Agency Problems of Excess Endowment Holdings in Not-for-Profit Firms, Journal of Accounting and Economics, 41, 307 - 333.  Abstract
  • John Core, Wayne Guay, Scott Richardson, Rodrigo Verdi (2006), Stock Market Anomalies: What Can We Learn from Repurchases and Insider Trading?, Review of Accounting Studies, 11, 49 - 70.  Abstract
  • John Core, Wayne Guay, Tjomme Rusticus (2006), Does Weak Governance Cause Weak Stock Returns? An Examination of Firm Operating Performance and Investors’ Expectations, Journal of Finance, 56, 655 - 687.  Abstract
  • Wayne Guay, Robert E. Verrecchia (2006), Discussion of an Economic Framework for Conservative Accounting and Bushman and Piotroski, Journal of Accounting & Economics, 42, 149 - 165.  Abstract
  • Wayne Guay (2006), Discussion of Ball and Shivakumar: The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition, Journal of Accounting Research, 44, 243 - 255.  Abstract
  • John Core, Wayne Guay, Randall Thomas (2005), Is U.S. CEO Compensation Broken, Journal of Applied Corporate Finance, 17 (4), 97 - 104.  Abstract
  • John Core, Wayne Guay, Randall Thomas (2005), Is U.S. CEO Compensation Inefficient Pay without Performance?, Michigan Law Review, 103 (6), 1142 - 1185.  Abstract
  • Wayne Guay, ""Equity Incentives"". In Top Pay and Performance: International and Strategic Approach, edited by John Core, David F. Larcker, (2005).  
  • John Core, Wayne Guay, Robert E. Verrecchia (2003), Price versus Non-Price Performance Measures in Optimal CEO Compensation Contracts, The Accounting Review, 78, 957 - 981.  Abstract
  • John Core, Wayne Guay, Andrew Van Buskirk (2003), Market Valuations in the New Economy: An Investigation of what has Changed, Journal of Accounting & Economics, 34, 43 - 67.  Abstract
  • Wayne Guay, S.P. Kothari (2003), How Much Do Firms Hedge with Derivatives?, Journal of Financial Economics, 70, 423 - 461.  Abstract
  • Wayne Guay, S.P. Kothari, Richard Sloan (2003), Accounting for Employee Stock Options, American Economic Review, 93 (2), 405 - 409.  Abstract
  • John Core, Wayne Guay, David Larcker (2003), Executive Equity Compensation and Incentives: A Survey, Economic Policy Review, 9, 27 - 50.  Abstract
  • John Core, Wayne Guay, S.P. Kothari (2002), The Economic Dilution of Employee Stock Options: Diluted EPS for Valuation and Financial Reporting, The Accounting Review, 77, 627 - 652.  Abstract
  • John Core, Wayne Guay (2002), Estimating the Value of Employee Stock Option Portfolios and Their Sensitivities to Price and Volatility, Journal of Accounting Research, 40, 613 - 630.  Abstract
  • Wayne Guay (2002), Discussion of: Real Investment Implications of Employee Stock Option Exercises, Journal of Accounting Research, 40, 395 - 406.  Abstract
  • John Core, Wayne Guay (2001), Stock option plans for non-executive employees, Journal of Financial Economics, 61, 253 - 287.
  • Wayne Guay, Baljit K. Sidhu (2001), The Usefulness of Long-Term Accruals, Abacus, 37, 110 - 131.  Abstract
  • Wayne Guay, Jarrad Harford (2000), The Cash-Flow Permanence and Information Content of Dividend Increases vs. Repurchases, Journal of Financial Economics, 57, 385 - 415.  Abstract
  • Wayne Guay (2000), Discussion of Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers, Journal of Accounting Research, 38, 43 - 51.  Abstract
  • John Core, Wayne Guay (1999), The Use of Equity Grants to Manage Optimal Equity Incentive Levels, Journal of Accounting and Economics, 28, 151 - 184.  Abstract
  • Wayne Guay (1999), The Sensitivity of CEO Wealth to Equity Risk: An Analysis of the Magnitude and Determinants, Journal of Financial Economics, 53, 43 - 78.  Abstract
  • Wayne Guay (1999), The Impact of Derivatives on Firm Risk: An Empirical Examination of New Derivatives Users, Journal of Accounting & Economics, 26, 319 - 351.  Abstract
  • Wayne Guay, S.P. Kothari, Ross L. Watts (1996), A Market-Based Evaluation of Discretionary-Accruals Models, Journal of Accounting Research, 34, 83 - 105.  Abstract

Awards And Honors

  • Best Paper Award, Australian Journal of Management, 2011
  • Best Paper Award – The Accounting Review Article of the Year, selected by the Financial Executive Research Foundation, 2002
  • Wharton Undergraduate Excellence in Teaching Award, 2002
  • Best Paper Award – second prize, Journal of Accounting & Economics Conference, 2001
  • WorldatWork Compensation Research Camp, 2001
  • American Compensation Association Research Grant, 1997-1998
  • Deloitte & Touche Doctoral Fellow, 1997

In The News

Knowledge @ Wharton



  • ACCT613 - Fundamentals of Financial and Managerial Accounting

    This course provides an introduction to both financial and managerial accounting, and emphasizes the analysis and evaluation of accounting information as part of the managerial processes of planning, decision-making, and control. A large aspect of the course covers the fundamentals of financial accounting. The objective is to provide a basic overview of financial accounting, including basic accounting concepts and principles, as well as the structure of the income statement, balance sheet, and statement of cash flows. The course also introduces elements of managerial accounting and emphasizes the development and use of accounting information for internal decisions. Topics include cost behavior and analysis, product and service costing, and relevant costs for internal decision-making. This course is recommended for students who will be using accounting information for managing manufacturing and service operations, controlling costs, and making strategic decisions, as well as those going into general consulting or thinking of starting their own businesses.

  • ACCT920 - Fundamental Empirical Accounting Research

    A fundamentals course that covers empirical research design and provides students with a perspective on historically important accounting research.

  • ACCT921 - Empirical Research Application I

    Empirical topics course on areas such as research on the time-series and cross-sectional properties of financial accounting measures, capital markets behavior, financial intermediaries, and international accounting research.

  • ACCT922 - Empirical Research Application II

    Empirical topics course on areas such as corporate governance, executive compensation, debt contracting, accounting regulation, tax, and management accounting.

  • ACCT991 - Seminar Colloquium

    Faculty led discussion prior to weekly research seminar presentations. Attendance at colloquium and seminar. Referee reports relating to research topics covered in discussions and seminars to be written.

  • ACCT992 - Seminar Colloquium

    Faculty led discussion prior to weekly research seminar presentations. Attendance at colloquium and seminar. Referee reports relating to research topics covered in discussions and seminars to be written.