Robert Magee
Robert Magee

Keith I. DeLashmutt Professor of Accounting Information & Management
Director, Accounting Research Center

Print Overview
Robert P. Magee is the Keith I. DeLashmutt Professor of Accounting Information and Management. He was appointed Director of the Accounting Research Center in 2006. Professor Magee served as Associate Dean for Academic Affairs: Faculty and Research from 2001 to 2005. Professor Magee has been a member of the Kellogg faculty since 1976 and served as the chair of the department of accounting information and management from 1983 to 1985 and from 1999 to 2001. His teaching interests are in financial accounting and the analysis of financial reports.

Professor Magee’s research has focused on the use of accounting information in contracting relationships, and in facilitating decision making and control within organizations and on issues in regulation of the audit market. He has also written about the market for audit services, the effects of auditors’ fee structures on their independence, and the use of cost allocations in motivating managerial behavior and assessing product profitability. Professor Magee’s recent research has examined the effects of political pressure on the standard-setting process in accounting.

Professor Magee has published articles in The Accounting Review, the Journal of Accounting Research, the Journal of Accounting and Economics and a variety of other journals. He is the author of Advanced Managerial Accounting and co-author of Efficient Capital Markets and Accounting: A Critical Analysis. The latter book received the Notable Contribution to the Accounting Literature Award from the American Institute of Certified Public Accountants in 1978. More recently, Professor Magee is co-author of the textbook Financial Accounting.

Professor Magee has served on the editorial boards of The Accounting Review, the Journal of Accounting Research, the Journal of Accounting and Economics and the Journal of Accounting, Auditing and Finance. From 1994 to 1996 he served as editor of The Accounting Review, the quarterly research journal of the American Accounting Association. He received the American Accounting Association’s Outstanding Accounting Educator Award in 1999 and the Illinois CPA Society Outstanding Educator Award in 2000. At Kellogg, Professor Magee received the Levy Teaching Award in 1996 and the Chairs’ Core Teaching Award in 1998 and again in 2001.

Professor Magee received his A.B., M.S. and PhD from Cornell University.

Areas of Expertise
Financial Disclosure/Statements
Financial Reporting
  • Recent Media Coverage

    Economist Intelligence Unit: Executive Briefing: Communicating the risks of investments in intellectual property: International financial standards may be better than U.S. standards

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Print Vita
PhD, 1974, Accounting, Cornell University
MS, 1972, Quantitative Methods for Management Decision Making, Cornell University
AB, 1969, Mathematics, Cornell University

Academic Positions
Keith I. DeLashmutt Professor of Accounting, Information, and Management, Kellogg School of Management, Northwestern University, 1990-present
Senior Associate Dean: Faculty Research, Kellogg School of Management, Northwestern University, 2003-2005
Associate Dean of Academic Affairs: Faculty and Research, Kellogg School of Management, Northwestern University, 2001-2003
Chair of Accounting, Information, and Management, Kellogg School of Management, Northwestern University, 1999-2001
Eric L. Kohler Professor of Accounting and Information Systems, Kellogg School of Management, Northwestern University, 1986-1990
Professor of Accounting and Information Systems, Kellogg School of Management, Northwestern University, 1979-1986
Chair of Accounting and Information Systems, Kellogg School of Management, Northwestern University, 1983-1985
Visiting Professor, Management Development Institute, IMD, 1980-1981
Associate Professor of Accounting and Information Systems, Kellogg School of Management, Northwestern University, 1976-1979
Assistant Professor of Accounting, Graduate School of Business, University of Chicago, 1973-1976

Grants and Awards
Kellogg Alumni Professor of the Year Award, Kellogg School of Management, 2003
Sidney J. Levy Teaching Award, Kellogg School of Management, 95-96

Print Research
Research Interests
Effects of financial reporting practices on investor and manager decision making

Magee, Robert and Jeremy Bertomeu. 2011. From Low-Quality Accounting to Financial Crises: Politics of Disclosure Regulation along the Economic Cycle. Journal of Accounting & Economics. 52(2-3): 209–227.
Keating, Elizabeth K. , Thomas Lys and Robert Magee. 2003. The Internet Downturn: Finding Valuation Factors In Spring 2000. Journal of Accounting and Economics. 34(1-3): 189-236.
Magee, Robert. 2001. Discussion of 'Contracting Theory and Accounting'. Journal of Accounting and Economics. 32(1-3): 89-96.
Magee, Robert. 1995. The Economics of Managerial Accounting. Accounting (Japan Society of Accounting).: 121-136.
Reprinted in:
Accounting (Japan Society of Accounting), 107-118. 1995.
Magee, Robert. 1993. Capacity Cost and Capacity Allocation. Contemporary Accounting Research. 9(2): 635-660.
Magee, Robert. 1992. A Perspective on Accounting and Defense Contracts. Accounting Review. 67(4): 732-740.
Dye, Ronald A. and Robert Magee. 1991. Discretion in Reporting Managerial Performance. Economics Letters. 35(4): 359-363.
Dye, Ronald A.Bala Balachandran and Robert Magee. 1990. Contingent Fees for Audit Firms. Journal of Accounting Research. 28(2): 239-266.
Magee, Robert. 1988. Variable Cost Allocation in a Principal/Agent Model. Accounting Review. 63(1)
Magee, Robert and Bala Balachandran. 1987. On the Allocation of Fixed and Variable Costs from Service Departments. Contemporary Accounting Research. 4(1): 164-185.
Johnson, W. Bruce and Robert Magee. 1985. An Analysis of the Stock Market Reaction to Sudden Executive Deaths: Implications for the Managerial Labor Market. Journal of Accounting and Economics. 7(1-3): 151-174.
Magee, Robert and W. Bruce Johnson. 1985. On Executive Succession. Administrative Science Quarterly. 30(3): 420-422.
Magee, Robert. 1980. Optimal Investigation Procedures Under Selected PSRO Policies. Medical Care. 18(10): 1032-1047.
Magee, Robert. 1980. Equilibria in Budget Participation. Journal of Accounting Research. 18(2): 551-573.
Magee, Robert. 1978. Accounting Measurement and Employment Contracts: Current Value Reporting. Bell Journal of Economics. 9(1): 145-158.
Magee, Robert. 1978. Effect of Compensation Plans on Heuristics in Cost Variance Investigations. Journal of Accounting Research. 16(2): 294-314.
Magee, Robert. 1977. Discussion of 'Financial Distress in Private Colleges'. Journal of Accounting Research. 15(supplement): 41-45.
Magee, Robert. 1977. Cost Control with Imperfect Parameter Knowledge. Accounting Review. 52(1): 190-199.
Magee, Robert. 1977. The Usefulness of Commonality Information in Cost Control Decisions. The Accounting Review. 52(4): 869-880.
Magee, Robert. 1977. Computer-Assisted Financial Planning: The Planner-Model Interface. Journal of Business Research. 5(3): 215-233.
Magee, Robert. 1977. An Evaluation of Prospective Payment Plans for Hospitals. Journal of Business. 50(4): 448-461.
Magee, Robert. 1976. A Simulation Analysis of Alternative Cost Variance Investigation Models. Accounting Review. 51(3): 529-544.
Magee, Robert. 1975. Discussion of 'Auditor's Loss Function Implicit in Consumption-Investment Models. Journal of Accounting Research. 13(3): 121-123.
Magee, Robert. 1975. Cost-Volume-Profit Analysis, Uncertainty and Capital Market Equilibrium. Journal of Accounting Research. 13(2): 257-266.
Magee, Robert. 1975. Dynamic Models of Bond Refunding. Decision Sciences. 6(4): 614-630.
Magee, Robert. 1974. Cost of Information and Security Prices: A Comment. Accounting Review. 49(4): 788-790.
Magee, Robert. 1974. Industry-Wide Commonalities in Earnings. Journal of Accounting Research. 12(2): 270-287.
Magee, Robert. 1972. Discussion of 'The Predictive Content of Interim Reports - A Time Series Analysis'. Journal of Accounting Research. 10(supplement): 145-155.
Sridharan, Swaminathan and Robert Magee. 1996. Financial Contracts, Opportunism and Disclosure Management. Review of Accounting Studies. 1(3): 225-258.
Working Papers
Magee, Robert. 2010. Bundled Products and Revenue Recognition.
Bertomeu, Jeremy and Robert Magee. 2013. Political Pressures and the Evolution of Disclosure Regulation.
Magee, Robert and Jeremy Bertomeu. 2014. Mandatory Disclosure and the Asymmetry in Financial Reporting.
Magee, Robert. 2009. Reasonably Certain Estimates, Recognition and Communiction of Uncertainty.
Magee, Robert, Jeremy Bertomeu and Georg Schneider. 2010. Positive Foundations of Mandatory Disclosure.
Book Chapters
Magee, Robert. 1980. "Regulation and the Cost-Effectiveness of Independent Audits by CPA's." In Regulation and the Accounting Profession, edited by JW Buckley and JF Weston, Lifetime Learning Press.
Magee, Robert, Thomas Dyckman and Glenn Pfeiffer. 2011. Financial Accounting. Westmont, IL: Cambridge Business Publishers, 3rd ed.
Magee, Robert. 1986. Advanced Managerial Accounting. New York, NY: Harper and Row.
Magee, Robert. 1975. Efficient Capital Markets and Accounting: A Critical Analysis. Prentice-Hall inc..

Print Teaching
Teaching Interests
Financial reporting practices and the analysis of financial information
Full-Time / Part-Time MBA
Accounting For Decision Making (ACCT-430-0)

This course counts toward the following majors: Accounting.

This course acquaints students with the process used to construct and understand the financial reports of organizations. The objective is to understand the decisions that must be made in the financial reporting process and to develop the ability to evaluate and use accounting data. Emphasis is placed on understanding the breadth of accounting measurement practices and on being able to make the adjustments necessary for careful analysis. The course highlights the linkages between accounting information and management planning, and decision making and control.

Executive MBA
Financial Reporting Systems (ACCTX-430-0)
Financial Reporting Systems introduces generally accepted accounting principles and concepts and trains students to analyze financial statements.