BfaC was established in 2004, when faculty members from the areas of financial accounting and managerial economics joined forces. The formation of the center was made possible through substantial research grants from the Söderberg Foundations, and later from the Swedish insurance company Pensionsgaranti.
Typical research areas at BfaC are concerned with the use of accounting and capital market information in valuation modeling, in particular related to free cash flow valuation and residual income or value added valuation. The relationship between publicly available financial statement information and stock prices is another research area. There is also research on the importance of accounting quality, and the value relevance of different types of accounting principles. The research is in the main quantitative.
The BfaC faculty belongs to the Accounting Department at Stockholm School of Economics, and most of the faculty members teach in various courses in accounting, financial analysis, and corporate finance at the school.