Professor Libby's primary teaching interests are in financial accounting, financial-statement analysis, and behavioral decision theory. His research centers on the interplay among managers' financial reporting decisions, financial analysts' forecasts, and auditors' assurance strategies. Most of his work is conducted within frameworks developed in the psychology of human judgment and decision making. His book Accounting and Human Information Processing: Theory and Applications received the AAA/AICPA Notable Contribution to the Literature Award in 1985. His article "Determinants of Judgment Performance in Accounting" (with Joan Luft, PhD 1992), won the same award in 1996. He received the American Accounting Association Outstanding Educator Award and the AAA/ABO Lifetime Scholarly Achievement Award in Behavioral Accounting, both in 2000, and the American Accounting Association Distinguished Service Award in 2006. He is a former co-editor of The Accounting Review and currently serves on several editorial boards. He is also the author of the best selling texts Financial Accounting (with Pat Libby and Dan Short), Fundamentals of Financial Accounting (with Pat Libby and Fred Phillips), and Managerial Accounting (with Stacey Whitecotton and Fred Phillips) (McGraw-Hill/Irwin).