Anywhere Sikochi - Faculty & Research - Harvard Business School
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Anywhere Sikochi

Assistant Professor of Business Administration

Accounting and Management

Anywhere (Siko) Sikochi is an assistant professor in the Accounting and Management unit, where he teaches the Financial Reporting and Control course in the MBA required curriculum. His research is directed at information disclosure, debt contracting, and credit risks associated with firm operations and organizational forms.

Professor Sikochi earned his PhD in business administration at the Penn State Smeal College of Business, where he taught financial accounting in the Executive MBA program. He previously received an MBA from the University of Virginia Darden School of Business. Before his graduate studies, Professor Sikochi worked at a branch of FTI Consulting and at Charles River Associates.

A native of Zimbabwe, Professor Sikochi came to the United States to attend Middlebury College, graduating with majors in economics and Russian. He is active in the EducationUSA United States Student Achievers Program, which helped him prepare for U.S. higher education. He is also engaged in the PhD Project, an organization with a mission to increase the diversity of U.S. business school faculty. He and his wife are parents of two daughters.

Working Papers
  1. Does the Non-Repatriation of Foreign Cash Negatively Affect U.S. Firms' Operations? Evidence from Product Market Competitiveness

    Badryah Alhusaini, Rick Laux, Henock Louis and Anywhere Sikochi

    Citation:

    Alhusaini, Badryah, Rick Laux, Henock Louis, and Anywhere Sikochi. "Does the Non-Repatriation of Foreign Cash Negatively Affect U.S. Firms' Operations? Evidence from Product Market Competitiveness." Harvard Business School Working Paper, No. 17-049, December 2016.  View Details
  2. Organizational Complexity and Creditor Recovery Rates

    Anywhere Sikochi

    I examine how organizational complexity arising from fragmentation of the firm into multiple legal entities affects creditor recovery rates. I show that organizational complexity can diminish creditors’ ability to recover their claims upon borrower default. The greater the number of entities, the lower the creditor recoveries upon default of the parent company. Moreover, recovery is lower when the parent company is a holding company with significant overseas operations in countries with weak governance. Additional tests show that during a financial crisis when creditor recoveries are generally low, organizational complexity exacerbates creditor losses.

    Keywords: Restructuring; Organizational Structure; Financing and Loans;

    Citation:

    Sikochi, Anywhere. "Organizational Complexity and Creditor Recovery Rates." Harvard Business School Working Paper, No. 17-047, December 2016.  View Details
  3. The Effect of Shareholder Litigation Risk on the Information Environment: The Case of Cross-Listed Firms

    Anywhere Sikochi

    I document the causal link between shareholder litigation risk and cross-listed firms’ information environment by exploiting a quasi-natural experiment in the form of a reduction in litigation risk resulting from the 2010 Supreme Court ruling in Morrison v. National Australia Bank. I first show that the ruling reduced litigation risk faced by cross-listed firms as evidenced by lower directors’ and officers’ insurance premiums for Canadian firms after the ruling. I then show that the information environment deteriorated for cross-listed firms after the ruling. The results are more pronounced for firms with low U.S. share activity, in bad-news firm quarters, and for firms from countries with weak legal institutions. By implication, these findings suggest that improvements in foreign firms’ information environment upon listing in the U.S., as documented in prior literature, stem in part from the greater litigation risk associated with the U.S. listing.

    Keywords: cross-listing; Information environment; Shareholder litigation risk; D&O Insurance; Risk and Uncertainty; Lawsuits and Litigation; Business and Shareholder Relations;

    Citation:

    Sikochi, Anywhere. "The Effect of Shareholder Litigation Risk on the Information Environment: The Case of Cross-Listed Firms." Harvard Business School Working Paper, No. 17-048, December 2016.  View Details
Cases and Teaching Materials
  1. Revenue Recognition at HBP

    Paul Healy and Anywhere Sikochi

    In early 2014, Paul Bills, CFO of Harvard Business Publishing (HBP), sat down with David Wan, the company’s CEO, to discuss budget preparations for the coming year. Bills noted that the performance of Corporate Learning, one of HBP’s three business units, would be affected by a business model change for its largest product that required a change in the timing of revenue recognition. Corporate Learning was in the process of revamping its flagship product, Harvard Manage-Mentor (HMM) from version 11.0 (HMM11) to version 12.0 (HMM12). The revamped software would be hosted exclusively on HBP’s server rather than on its clients’ servers, allowing updates to take place continuously. Given the change, accounting standards required HBP to change the recognition of revenue from the date of software delivery (for HMM11) to ratable recognition over its contract life (for HMM12). As Bills and Wan discussed the accounting change, they recognized that its impact on Corporate Learning’s and HBP’s performance could be material and would have to be reflected in the budget. In addition, they wondered how the new accounting would affect the company’s policy for awarding sales incentive compensation on HMM, as well as how they communicated with employees and the firm’s sole shareholder, the Harvard Business School.

    Keywords: Accrual Accounting; Budgets and Budgeting; Revenue Recognition; Financial Reporting; Publishing Industry; Education Industry; United States;

    Citation:

    Healy, Paul, and Anywhere Sikochi. "Revenue Recognition at HBP." Harvard Business School Case 119-029, August 2018.  View Details
  2. Steinhoff International: Accounting Irregularities and Financial Markets

    Siko Sikochi and Austin Lim

    Steinhoff International Holdings N.V. was a holding company whose subsidiaries manufactured, distributed and sold furniture and household products. Steinhoff was widely known as a South African company because it first listed on the South African Johannesburg Stock Exchange (JSE) and its global headquarters was in South Africa. However, Steinhoff went on to expand from distribution and manufacturing to retail businesses across 30 countries, employing over 130 thousand people. As its global revenues grew, especially in Europe, Steinhoff created a new holding company, Steinhoff International Holdings N.V. incorporated in the Netherlands and with a primary listing in Germany and secondary listing on the JSE. Steinhoff was soon mired in allegations and investigations of accounting misrepresentations and came crashing down on December 6, 2017 after admission of possible accounting irregularities. The case is set days after news broke out about the accounting irregularities and explores the decision of the (JSE) on whether to suspend the listing of Steinhoff’s securities.

    Keywords: Accounting; Financial Reporting; Mergers and Acquisitions; Financial Markets; Corporate Governance; Retail Industry; Manufacturing Industry; Distribution Industry; Africa; South Africa;

    Citation:

    Sikochi, Siko, and Austin Lim. "Steinhoff International: Accounting Irregularities and Financial Markets." Harvard Business School Case 118-066, February 2018. (Revised July 2018.)  View Details
  3. Fair Value Accounting at Noble Group (B)

    Siko Sikochi, Suraj Srinivasan and Quinn Pitcher

    Following a series of reports by Iceberg Research alleging that Noble Group was too aggressive in its fair value accounting for contracts and investments in producers, Noble’s stock price continued to fall and stakeholders began to call for improved transparency in financial reporting. This case contains two actions that the company took in an attempt to signal confidence in and credibility of its financials. This case supplements the (A) case HBS No. 118-034.

    Keywords: Fair Value Accounting; Contracts; Valuation;

    Citation:

    Sikochi, Siko, Suraj Srinivasan, and Quinn Pitcher. "Fair Value Accounting at Noble Group (B)." Harvard Business School Supplement 118-062, January 2018. (Revised August 2018.)  View Details
  4. Fair Value Accounting at Noble Group (A)

    Siko Sikochi, Suraj Srinivasan and Quinn Pitcher

    Noble Group was a large commodities trader based in Hong Kong and listed on the Singapore Stock Exchange. In 2012, Noble shifted its business strategy towards an asset-light model. Under this model, Noble did not own mines or farms to produce commodities but built commodity sourcing capacity by working with and investing in producers in exchange for purchase and marketing contracts. Noble also worked with customers to secure supply contracts. Noble had a portfolio of 12,000 commodity contracts by the end of 2014. The contracts were measured at fair value. Iceberg Research, an anonymous blog, released a series of reports starting in February 2015 alleging that Noble was too aggressive in its fair value accounting for contracts and investments in producers. Iceberg did not accuse Noble of fraud but suggested that Noble’s profits and balance sheet were highly inflated and Noble was headed for disaster. The case explores Noble’s business and the valuation of its contracts.

    Keywords: Fair Value Accounting; Policy; Goods and Commodities; Contracts; Valuation;

    Citation:

    Sikochi, Siko, Suraj Srinivasan, and Quinn Pitcher. "Fair Value Accounting at Noble Group (A)." Harvard Business School Case 118-034, November 2017. (Revised August 2018.)  View Details