Flake presents at accounting research symposium

Flake's research takes a closer look at the human side of accounting, an aspect often overshadowed by data and spreadsheets. "There are people behind all these numbers, and they make the difference," Flake said. "Accounting is about creating a story about what a company is doing, but how managers convey those numbers affects how investors interpret that story."

His work explores a difficult balance for accounting managers who are often accused of non disclosure. Flake aims to find how accounting managers can remain transparent and authentic while still "selling the story" of their company's performance. "There's a perception that managers lie to serve their own interests," Flake said. "But for the most part, I believe managers are genuinely trying to communicate and do their best."

To test how credibility plays out in real time, Flake analyzed conference transcripts from 500 S&P companies, focusing on how managers responded to analysts' questions. The results showed that a majority of managers' replies were categorized as "avoidant" responses that dodged or deflected rather than directly addressing concerns.

Flake feels these moments have implications far beyond just a single interaction. "The way managers interact with investors doesn't just affect one conversation - it shapes every future one," he said. "Honesty from the start builds trust that lasts."

Ultimately, Flake's work highlights that behind every financial statement is a human relationship built on communication, credibility and trust - qualities that are just as important as the numbers themselves.

Share This

• Share on Facebook
• Share on X
• Share on LinkedIn
• Share through Email