Ph. D. (Industrial and Systems Engineering), Auburn University, USA
MSc. (Industrial and Systems Engineering), Auburn University, USA
MBA (PIM), Sri Lanka
BSc. (Industrial Management, minor Mathematics) First Class Honours, Sri Lanka
ACMA, United Kingdom

Dr. Hemantha Herath is a professor of Managerial Accounting at the Goodman School of Business. Previously, he was an assistant professor at University of Northern British Columbia and a consultant in the Oil and Gas Division of The World Bank, Washington D.C. He is a recipient of a Fulbright Scholarship. He has published articles in a variety of journals including ABACUS, Decision Support Systems, Journal of Accounting and Public Policy, Journal of Management Information Systems, Advances in Quantitative Analysis of Finance and Accounting, Advances in Investment Analysis and Portfolio Management, Advances in Management Accounting, The Engineering Economist, Managerial Finance Journal, and Managerial Auditing Journal. His research interests include real option analysis, economics of information security, and managerial accounting. His research has been funded by Social Sciences and Humanities Research Council (SSHRC ) Canada (2004-2008, 2009-2013) and other grants. He is a two time recipient (2008, 2001) of the Eugene L. Grant Best Paper Award from the American Society of Engineering Education (ASEE). In 2002 -2003, he served as the Director of the Engineering Economy Division of the Institute of Industrial Engineers (IIE), USA and currently serves on the editorial board of the Engineering Economist and the Journal of Financial and Economic Policy . He is also a member of Sigma Xi- research honor society.
Dr. Herath was a visiting scholar on sabbatical at the Robert H. Smith School of Business, University of Maryland.

RESEARCH AREA

SELECTED PUBLICATIONS

Journal Articles

Herath, H. and Herath, T. Data Science in Accounting: Budget Analytics using Monte Carlo Simulation, Advances in Accounting Education: Teaching and Curriculum Innovations, Volume 28, Forthcoming.

Herath, T., D'Arcy, J., Herath, H., and Yuan, S. Role of Need to Belong, Social Influences, and Perceived Risks in Social Networking Behaviors, International Journal of Digital Society, Volume 15, 2024.

Herath, T., Herath, H., and Cullum, D. An Information Security Performance Measurement Tool for Senior Managers: Balanced Scorecard Integration for Security Governance and Control Frameworks, Information Systems Frontiers, Volume 25, 2023.

Herath, H. Technology Enhanced Learning: Monte Carlo Simulation of a Cash Budget, International Journal of Intelligent Computing Research, Volume 14, 2023.

Herath, H. and Jahera, J. Real Option Valuation of Timber Harvesting Contracts, Appplied Stochastic Models in Business and Industry, Volume 38, Number 1, 2022.

Paldino, S. and Herath, H. Role of Government Regulatory Pressures over Small Wineries: A Niagara Peninsula Case Study of Compliance Effects in Wine Bottling, Journal of Small Business Management, Volume 60, Number 2, 2022.

Herath, H. and Herath, T. Joint Cost Allocation Anomaly Detection in Not-for-profit Organizations (NPOs) Using Cluster Analysis, Accountancy Business and the Public Interest, Volume 20, 2021.

Herath, T. and Herath, H. Coping with the New Normal Imposed by the COVID-19 Pandemic: Lessons for Technology Management and Governance, Information Systems Management, Volume 37, Number 4, 2020.

Barth, J., Herath, H., Herath, T., and Xu, P. Cryptocurrency Valuation and Ethics: A Text Analytic Approach, Journal of Management Analytics, Volume 7, Number 3, 2020.

Herath, T., Herath, H., and D'Arcy, J. Organizational Adoption of Information Security Solutions: An Integrative Lens based on Innovation Adoption and the Technology-Organization-Environment Framework, The Data Base for Advances in Information Systems, Volume 51, Number 2, 2020.

Herath, H. and Sharman, P. Stochastic Cost-Volume-Profit (CVP) Analysis – Modeling Multiple Random Variables, Journal of Cost Management, September, 2019.

Herath, H., Herath, T., and Dunn, P. Profit-Driven Corporate Social Responsibility as a Bayesian Real Option in Green Computing, Journal of Business Ethics, Volume 158, Number 2, August, 2019.

Herath, H. Post-auditing and Cost Estimation Applications: An Illustration of MCMC Simulation for Bayesian Regression Analysis, Engineering Economist, Volume 64, Number 1, 2019.

Herath, H., Bremser, W., and Brinberg, J. Team-Based Employee Remuneration: A Balanced Scorecard Group Target and Weight Selection–Based Bonus Allocations, Accounting Research Journal, Volume 32, Number 2, 2019.

Herath, H. and Herath, T. Post-Audits for Managing Cyber Security Investments: Bayesian Post-Audit Using Markov Chain Monte Carlo (MCMC) Simulation, Journal of Accounting and Public Policy, Volume 37, Number 6, December, 2018.

Herath, H. and Lu, X. Inference of Economic Truth from Financial Statements for Detecting Earnings Management: Inventory Costing Methods from an Information Economics Perspective, Managerial and Decision Economics, Volume 39, Number 4, 2018.

Herath, H. and Sharman, P. A. Activity Idle Capacity Cost Estimation via Monte Carlo Simulation, Journal of Cost Management, Volume 31, Number 2, April, 2017.

Herath, H., Richardson, A. W., Roubi, R., and Tippett, M. Non-Linear Equity Valuation: An Empirical Analysis, ABACUS, Volume 51, Number 1, March, 2015.

Kumar, P. and Herath, H. Bayesian Analysis in Industrial Applications using Markov Chain Monte Carlo Simulations, International Journal of Computational and Theoretical Statistics, Volume 2, Number 1, 2015.

Herath, H. and Kumar, P. Using Copula Functions in Bayesian Analysis: A Comparison of the Lognormal Conjugate,, Engineering Economist, Volume 60, Number 2, 2015.

Herath, H. and Kusy, M. Activity-Based Costing: Potential Research Issues on the Choice of Cost Management Systems, Journal of Cost Management, Volume 28, Number 5, September, 2014.

Herath, H., Bremser, W., and Birnberg, J. A Balanced Scorecard Strategic Initiative Planning Model with Resource Constraints, Advances in Management Accounting, Volume 24, Number 1, 2014.

Herath, H. and Herath, T. IT Security Auditing: A Performance Evaluation Decision Model, Decision Support Systems, Volume 57, Number 1, 2014.

Herath, H., Kumar, P., and Amershi, A. H Crack Spread Option Pricing with Copulas, Journal of Economics and Finance, Volume 37, Number 1, 2013.

Herath, H. and Herath, T. Copula Based Actuarial Model for Pricing Cyber-Insurance Policies, Insurance Markets and Companies: Analyses and Actuarial Computations, Volume 2, Number 1, 2011.

Herath, H. Cybersecurity: An Emerging Area for Collaborative Post-Modern Management Accounting Research, Journal of Cost Management, Volume 25, Number 1, 2011.

Herath, T., Herath, H., and Bremser, W. Balanced Scorecard Implementation of Security Strategies: A Framework for IT Security Performance Management, Information Systems Management, Volume 27, Number 1, 2010.

Herath, H., Bremser, W., and Birnberg, J. Facilitating a Team Culture: A Collaborative Balanced Scorecard as an Open Reporting System, Advances in Management Accounting, Volume 18, Number 1, 2010.

Herath, H., Bremser , W. , and Birnberg, J. Joint Selection of Balanced Scorecard Targets and Weights in a Collaborative Setting, Journal of Accounting and Public Policy, Volume 29, Number 1, 2010.

Herath, H. and Herath, T. Investments in Information Security: A Real Options Perspective with Bayesian Post-Audit, Journal of Management Information Systems, Volume 25, Number 3, Winter, 2009.

Adamson, I., Ayanso, A., and Herath, H. Sharp Cost Data, Industrial Management, Volume 50, Number 6, November, 2008.

Herath, H. and Kumar, P. New Research Directions in Engineering Economics – Modeling Dependencies with Copulas, Engineering Economist, Volume 52, Number 4, 2007.

Herath, H. and Kumar, P. On Simple Binomial Approximations for Two Variable Functions in Finance, Advances in Quantitative Analysis of Finance and Accounting, Volume 5, Number -, 2007.

Herath, H. S. B. and Kumar, P. Multinomial Approximation Models for Options, Advances in Investment Analysis and Portfolio Management, Volume 2, Number -, 2006.

Richardson, A. W., Roubi, R., and Herath, H. S. B. Real Option Based Equity Valuation Models: An Empirical Analysis, Advances in Quantitative Analysis of Finance and Accounting, Volume 4, Number -, 2006.

Herath, H.S.B. and Bremser, W.G. Real-Option Valuation of Research and Development Investments: Implications for Performance Measurement, Managerial Auditing Journal, Volume 20, Number 1, 2005.

Herath, H.S.B. and Jahera, J.S.Jr. Measuring and Accounting for Market Price Risk as Real Options in Stock for Stock Exchanges, Advances in Management Accounting, Volume 12, 2004.

Herath, H.S.B. and Kumar, P. The Jackknife Estimator for Estimating the Volatility of a Stock, Corporate Finance Review, Volume 7, Number 3, November, 2002.

Herath, H.S.B. and Park, C.S. Multi-stage Capital Investment Opportunities as Compound Real Options, The Engineering Economist, Volume 47, Number 1, 2002.

Herath, H.S.B. and Jahera, J.S.Jr. Real Options: Valuing Flexibility in Strategic Mergers & Acquisitions as an Exchange Ratio Swap, Managerial Finance, Volume 28, Number 12, 2002.

Herath, H.S.B., Jahera, J.S.Jr., and Park, C.S. Deciding Which R & D Project to Fund, Corporate Finance Review, Volume 5, Number 5, March, 2001.

Herath, H.S.B. and Park, C.S. Real Option Valuation and Its Relationship to Bayesian Decision-Making Methods, The Engineering Economist, Volume 46, Number 1, 2001.

Park, C.S. and Herath, H.S.B Exploiting Uncertainty - Investment Opportunities As Real Options: A New Way of Thinking in Engineering Economics, The Engineering Economist, Volume 45, Number 1, 2000.

Herath, H.S.B. and Park, C.S. Evaluating R & D Projects: An Options Approach, The Engineering Economist, Volume 44, Number 1, 1999.

Herath, H. S. B., Park, C. S. , and Prueitt, G.C. Monitoring projects using cash flow control charts., Engineering Economist, Volume 41, Number 1, 1995.

Galagedera, D. and Herath, H. A Simulation Model with Population of Commuters as a Parameter for Locating Transit Points Along Travel Routes, Modeling, Simulation and Control C. ASME, Volume 16, Number 3, 1989.

Books Authored

Herath, H. Predictive Analytics A Self Study Guide: Monte Carlo Simulation with Applications to Managerial and Cost Accounting, Part 1: Excel, Amazon Kindle, Seattle, Washington, 2023. (165 pages).

Herath, H. Predictive Analytics A Self Study Guide: Monte Carlo Simulation with Applications to Managerial and Cost Accounting, Part 2: Modeling with R, Amazon Kindle, Seattle, Washington, 2023. (157 pages).

Bremser , Wayne and Herath, H. Linking R&D Performance Measurement and Valuation to Corporate Strategy, Portfolio 5312 in BNA’s Accounting Policy & Practice Series, BNA-Tax Management Inc., Arlington, Virginia, 2009. (112 pages).

Book Chapters / Sections

Herath, H., Herath, T., and Ekanayake, A. Climate Preservation in Urban Communities Case Studies - Chapter: Smart Community and City Environmental Responsibility. Editors: . Woodrow Clark, Elsevier Inc, United States of America, 2019.

Roubi, R., Herath, H., and Jahera, J. Handbook of Financial Econometrics and Statistics - Chapter: Evidence on Earning Management by Integrated Oil and Gas Companies. Editors: C. F. Lee and John C. Lee. Springer, United States of America, 2015.

Roubi, R., Herath, H., and Jahera, J. Handbook of Financial Econometrics & Statistics - Chapter: Political Costs and Earnings Management: The Case of Integrated Oil and Gas Companies. Editors: . Springer Academic Publishers, New York, 2015.

Herath, H. and Jahera, John Operational Flexibility in an International Context: New Developments and Applications in Real Options - Chapter: Valuing Forest Investments: An Application to British Columbia Small Forest Businesses. Editors: Lenos Trigeorgis. Oxford University Press, United Kingdom, 2010.

Ayanso, A. and Herath, H. Real Options in Engineering Design, Operations, and Management - Chapter: Real Options in Nanotechnology R&D. Editors: Harriet Black Nembhard. CRC Press, Florida, 2009.

Herath, H., Jahera Jr., J., and Roubi, R. Global Banking Issues - Chapter: A Perspective on Bank Mergers and the Role of Antitakeover Defense Mechanisms. Editors: E. Klein. Nova Science Publishers, Inc., New York, 2005.

Herath, H.S.B. and Jahera, J.S.Jr. The International Encyclopedia of Financial Engineering and Risk Management - Chapter: Operational Hedging and Financial Engineering in Mergers and Acquisitions. Editors: . Fitzroy Dearborn, , 2003.

Herath, H.S.B. and Jahera, J.S.Jr. Advances in Operational Risk - Chapter: Operational Risk in Bank Acquisitions: A Real Options Approach to Valuing Managerial Flexibility. Editors: . Risk Books, Risk Waters Group Ltd., Haymarket House, London, 2003.

Conference Proceedings and Presentations

Herath, H. and Herath, T. Bayesian Post-audit of an E-mail Service Security Investment - 2nd International Conference on Advancements in Information Technology (ICAIT), Singapore, Other / Not in List, August, 2013.

Herath, H. and Herath, T. Copula Based Actuarial Model for Pricing Cyber-Insurance Policies - Seventh Annual Forum on Financial Information Systems and Cybersecurity (Invited), University of Maryland, Maryland, January, 2011.

Herath, H. and Herath, T. Information Security Auditing- A Decision Model for Performance Evaluation - Management Accounting Section (MAS) Research and Case Conference, Atlanta, Georgia, January, 2011.

Herath, H. and Herath, T. Security Auditing- Performance Evaluation Decision Model - Pre ICIS Workshop in Information Security and Privacy (WISP), St. Louis, Missouri, December, 2010.

Herath, H. and Kumar, P. Non-linear Dependence Modeling in Energy Derivatives - Financial Management Association (FMA) Asia Conference, Singapore Management University, Singapore, July, 2010.

Herath, H. and Herath, T. IT Security Risk Management with Cyber-Insurance - INFORMS-Canadian Operations Research Society, Toronto, Ontario, June, 2009.

Herath, H. and Herath, T. Bayesian Post Audit and Extensions - INVITED Presentation, Robert H. Smith School of Business, University of Maryland, College Park, Maryland, April, 2009.

Herath, H., Roubi, R., and Richardson, A. W. An Investigation of Nonlinearity in Equity Valuation - 2008 Annual Meeting of the American Accounting Association, Anaheim, California, August, 2008.

Herath, H., Bremser, W. G., and Birnberg, J. Joint Selection of Balanced Scorecard Targets and Weights in a Collaborative Setting - Robert H. Smith School of Business, University of Maryland, Maryland, November, 2007.

Herath, H. and Herath, T. Cyber-Insurance: Copula Pricing Framework and Implications for Risk Management - Sixth Workshop on the Economics of Information Security (WEIS), Pittsburgh, Pennsylvania, June, 2007.

Amershi, A. and Herath, H. Towards a theory of Activity-Based Costing: Structural Foundations, Value Equivalence of all ABC Systems and Empirical implications - Canadian Academic Accounting Association, Halifax, Nova Scotia, June, 2007.

Herath, H. and Kumar, P. Pricing Energy Derivatives with Nonlinear Dependence - IIE, Industrial Engineering Research Conference, Nashville, Tennessee, May, 2007.

Herath, H., Bremser, W., and Birnberg, J. An Analytical Model for Determining Balanced Scorecard Targets and Weights with Multiple (N>2) Actor Preferences - Asia-Pacific Conference on International Accounting Issues, Maui, Hawaii, October, 2006.

Herath, H. and Herath, T. Justifying Spam and E-mail Virus Security Investments: A Case Study - Fifth Workshop on the Economics of Information Security (WEIS), Cambridge, England, June, 2006.

Herath, H. and Kumar, P. Survey of Copulas: Pricing Crack Spread Options - IIE, Industrial Engineering Research Conference, Orlando, Florida, May, 2006.

Herath, H., Bremser , W, and Birnberg, J Cooperation and Fairness: Setting Balanced Score Card Targets Using Two Party Negotiation Models - Canadian Academic Accounting Association Conference, Quebec, Quebec, May, 2005.

Herath, H., Bremser, W., and Birnberg, J. Cooperation and Fairness: Setting Balanced Score Card Targets Using Two Party Negotiation Models - AIMA Conference on Management Accounting Research, Monterey, California, May, 2005.

Herath, H.S.B. and Kumar, P. On Simple Binomial Approximations for Options - Pacific Basin Finance Economics and Accounting Conference, Bangkok, Thailand, August, 2004.

Herath, H.S.B. and Bremser, W.G. Real-Option Valuation of Research and Development Investments: Implications for Performance Measurement - Canadian Academic Accounting Association, Vancouver, British Columbia, May, 2004.

Herath, H.S.B. and Bremser, W.G. Real-Option Valuation of Research and Development Investments: Implications for Performance Measurement - 27th European Accounting Association Annual Congress, Prague, Czech Republic, April, 2004.

Herath, H.S.B. and Jahera, J.S.Jr. Measuring and Accounting for Market Price Risk as Real Options in Stock for Stock Exchanges - AIMA Conference on Management Accounting Research, Monterey, California, May, 2003.

Herath, H.S.B. and Jahera, J.S.Jr. Measuring and Accounting for Market Price Risk in Stock for Stock Exchanges as Real Options - Canadian Academic Accounting Association, Ottawa, Ontario, May, 2003.

Herath, H.S.B., Kumar, P., and Park, C. Real Options: Further Results for a Two State Variable Approximation Model - Industrial Engineering Research Conference, Portland, Oregon, May, 2003.

Herath, H.S.B. and Jahera, J.S.Jr. Mergers and Acquisitions-Valuing Managerial Flexibility as a Real Options Collar in Stock for Stock Exchanges - Management Accounting Section (MAS) Research and Case Conference, San Diego, California, January, 2003.

Herath, H.S.B. and Jahera, J.S.Jr. Mergers and Acquisitions: Valuing Managerial Flexibility as a Real Option Collar in Stock Exchanges - Northern Finance Association 2002 Annual Meeting, Banff, Alberta, September, 2002.

Herath, H.S.B. and Kumar, P. External Audit Requirements of Banking Systems Around the World - 10th Pacific Basin Finance, Economics and Accounting (PBFEA) Annual Conference, Singapore, Singapore, August, 2002.

Herath, H.S.B. and Park, C.S. Multistage Projects as Compound Real Options When Assets Are Not Traded - Northeast Business and Economics Association (NEBA) Annual Conference, Connecticut, September, 2001.

Herath, H.S.B. and Barth, J.R. A Nested Option Model for Multi-stage Capital Investment Decisions - 8th Asia Pacific Finance Association (APFA) Annual Conference, Bangkok, Thailand, July, 2001.

Herath, H.S.B. and Park, C.S. An Options Approach to Incremental Automation - 9th International Conference on Flexible Automation and Intelligent Manufacturing, Tilburg, Netherlands, June, 1999.