Patrick R. Martin University of Pittsburgh Joseph M. Katz Graduate School of Business Mervis Hall Pittsburgh, PA,

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Patrick R. Martin

University of Pittsburgh

Joseph M. Katz Graduate School of Business

Mervis Hall

Pittsburgh, PA, 15260

prmartin@katz.pitt.edu

EDUCATION

Joseph M. Katz Graduate School of Business, University of Pittsburgh Pittsburgh, PA Ph.D., Accounting (expected graduation May 2013)

John L. Grove College of Business, Shippensburg University, Shippensburg, PA Bachelor of Science, Accounting; Summa Cum Laude, overall GPA 3.98 (2002)

ACADEMIC RESEARCH

Research Interests: Managerial accounting Financial accounting

Corporate social responsibility Behavioral decision making Publications:

Moser, D. V. and P. R. Martin (2012) “A Broader Perspective on Corporate Social Responsibility Research in Accounting.” The Accounting Review: May 2012, Vol. 87, No. 3, pp.797-806

Working Papers:

Martin, P. “Corporate Social Responsibility and Managerial Reporting,” (2012, preliminary working paper from dissertation)

Dissertation committee: Donald V. Moser (chair), John Harry Evans III (member), Vicky B. Hoffman (member), R. Lynn Hannan (member), Jacob G. Birnberg (member)

My study examines the process by which corporate social responsibility (hereafter CSR) decisions are made. I examine the CSR decision process by investigating how the need for upper-level managers to rely on cost reports from lower-level managers with private cost information can affect the frequency of investments in CSR. Prior research has shown that managers are willing to sacrifice personal and firm wealth to pursue CSR initiatives. Prior research has also shown that managers have preferences for honesty. Introducing hierarchical reporting into the CSR decision setting raises the possibility that managers’ preferences for honesty could reduce their willingness to implement CSR initiatives when doing so requires them to misreport. Because of the broad potential impact of CSR decisions, the results of my study should be of interest to upper level managers who rely on reports from others for input into CSR decisions, to investors who are affected by the impact of CSR decisions on shareholder value, and, more generally, to all those who are concerned with the societal benefits associated with CSR.

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Martin, P. and D. Moser. “Managers’ Green Investment and Related Disclosure Decisions,” (2012, under review at the Journal of Economic Behavior and Organization)

This study uses experimental markets to examine whether preferences for societal benefits lead managers to invest in unprofitable green projects, what information they disclose regarding such investments, and how investors react to those disclosures. We find that managers who are also shareholders in their company make green investments even when they know this reduces shareholder value, thereby decreasing their own and other current shareholders’ payoffs. Moreover, managers voluntarily disclose to potential investors that they have made such unprofitable green investments and tend to focus their disclosures on the societal benefits of their green investment rather than on the cost to the company. Finally, potential investors’ bids for the company reward managers and other current shareholders more when managers disclose their green investments than when they do not, and this result is stronger when managers’ disclosures focus on the societal benefits of their investment rather than on the cost to the company. These results are consistent with both managers and potential investors trading off personal wealth for societal benefits and help explain why, given the current voluntary reporting environment, company managers often focus their disclosures of environmental

investments on the benefits to society and to the company rather than on the cost to the company. In addition to these specific results, our study demonstrates the benefits of using experiments to study important corporate social responsibility issues that are difficult to address using archival data.

Accepted for presentation at:

- MAS Research and Case Conference, January 2012

- Experimental Economics, Accounting and Society: A Conference in Memory of John Dickhaut, January 2012

Brown, J., P. Martin, D. Moser, and R Weber. “Outsourcing in a Gift Exchange Environment,” (2012) This study reports the results of experimental labor markets that are designed to test the impact of firms replacing higher cost workers with lower cost workers (i.e., outsourcing). Firms move some or all of their operations to locations with lower labor costs to increase profits. However, we predict that the profit implications of such a strategy are unclear because current workers may view this action as unfair and may reduce their effort as one way to show their displeasure with the firm’s decision to hire new workers at a lower cost. We find that when firms replace current workers with new workers at a lower wage, remaining workers provide lower effort, and firms also reduce the remaining workers wages. As a result, hiring new workers at a lower wages does not result in greater firm profit but only results in lower wages for workers and subsequently lower social welfare. Our results provide experimental evidence that firms need to consider not only the wage savings when making a decision whether to outsource but also how this decision could affect the relationship between the firm and its existing employees.

- International Economic Science Association Conference, June 2012 - American Accounting Association Annual Meeting, August 2012

Martin, P. “Why Managers “Go Green” and Investors’ Reaction” – (2009, first year working paper)

This study reports the results of an experiment examining the behavior of managers and investors in a setting in which managers can contribute a portion of their firm’s earnings to a green fund and investors bid for the firm’s stock. The results indicate that managers are quite willing to contribute a portion of the firm’s earnings to a green cause, even though this reduces their payment for selling the firm’s stock. Although investors reduce their bids when the manager contributes to the green cause, they do not do so by the full amount of the contribution. The resulting payoffs to the managers and investors indicate that managers bear approximately two-thirds of the cost of the contribution, while investors bear approximately one-third of the cost. This result provides evidence that some managers and investors are willing to accept lower payouts in exchange for the

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societal benefits of going green. Although the existence of such motivation by investors and managers has been debated in prior research, the experimental method used in this study provides a clearer test of managers’ and investors’ willingness to bear personal costs to achieve societal benefits.

- American Accounting Association Ohio Region Meeting, May 2009

TEACHING EXPERIENCE

Teaching Interests: Financial and Managerial accounting

Instructor, Managerial Accounting (MBA course), University of Pittsburgh, Fall 2011 Full responsibility for course (ratings based on a 5-point scale)

Overall Instructor Rating 4.21

Instructor, Financial Accounting, University of Pittsburgh, Spring 2010 Full responsibility for course (ratings based on a 5-point scale)

Overall Instructor Rating 4.04

Teaching Assistant, Financial Accounting (MBA course), University of Pittsburgh, Fall 2009

PRESENTATIONS

International Economic Science Association Conference, June 2012

 Brown, J., P. Martin, D. Moser, and R Weber. “Outsourcing in a Gift Exchange Environment” Experimental Economics, Accounting and Society: A Conference in Memory of John Dickhaut, January 2012

 Martin, P. and D. Moser. “Managers’ Green Investment and Related Disclosure Decisions” MAS Research and Case Conference, January 2012

 Martin, P. and D. Moser. “Managers’ Green Investment and Related Disclosure Decisions” University of Pittsburgh

 Martin, P. and D. Moser. “Managers’ Green Investment and Related Disclosure Decisions” – July 2010

 Martin, P. “Why Managers “Go Green” and Investors’ Reaction” – January 2009 American Accounting Association Ohio Region Meeting, May 2009

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CONFERENCES AND MEETINGS ATTENDED

International Economic Science Association Conference,

New York University, 2012

Experimental Economics, Accounting and Society: A Conference in Memory of John Dickhaut, Chapman University, 2012

American Accounting Association Management Accounting Section, Doctoral Colloquium and Conference, 2012

The Intersection of Economics and Psychology in Accounting Research, The University of Texas at Austin, 2010

American Accounting Association/Deloitte/J. Michael Cook Doctoral Consortium, 2009 American Accounting Association Ohio Region Meeting, 2009

American Accounting Association Financial Accounting and Reporting Section, Doctoral Colloquium and Conference, 2008

SERVICE

Reviewer - American Accounting Association Management Accounting Section Conference, 2012 Discussant - American Accounting Association Management Accounting Section Conference, 2012 Moderator - American Accounting Association Management Accounting Section Conference, 2012

PROFESSIONAL EXPERIENCE

Stambaugh Ness, PC – York, PA Senior Accountant Dec 2006 – April 2007 Constellation Energy Financial Analyst April 2005 – July 2006 Commodities Group – Baltimore, MD

Stambaugh Ness, PC – York, PA Senior Auditor June 2002 - April 2005 Transcore Inc. – Hummelstown, PA Accounting Intern Summer 2001

PROFESSIONAL CERTIFICATIONS AND AFFILIATIONS

Certified Public Accountant, Pennsylvania (inactive)

Member, American Accounting Association

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ACADEMIC HONORS AND AWARDS

David Berg Center BNY Mellon Doctoral Research Grant (2011-2012) Deloitte Foundation Doctoral Fellowship in Accounting (2010-2012)

Doctoral Consortium Fellow – AAA/Deloitte/J. Michael Cook Doctoral Consortium (2009) Myra G. Mervis Fellowship (2007-2008)

Graduated Summa Cum Laude from the John L Grove College of Business, Shippensburg University (2002) PICPA Sophomore Scholarship Recipient (2000-2002) – Scholarship was granted for three consecutive years based on outstanding academic performance

John L. and Cora J. Grove Scholarship Recipient (1999-2002) – Scholarship was granted for four consecutive years based on academic promise and continuing academic performance

Reva Hoback Brubaker Scholarship Recipient (1999-2002) – Scholarship was granted for four consecutive years based on academic promise and continuing academic performance

REFERENCES

Donald V. Moser – Professor of Business Administration and J. R. Allen Faculty Fellow E-mail: dmoser@katz.pitt.edu, Phone: 412-648-1726

John Harry Evans III – Katz Alumni Professor of Accounting Email: jhe@katz.pitt.edu, Phone: 412-648-1714 Vicky B. Hoffman – Professor of Business Administration