Capital Markets-Based Research in Financial Accounting
- 6 credits
- Prerequisite: Z798 Research Methods
The primary objectives of this course are to introduce you to empirical research in financial accounting and to enable you to develop an array of research skills necessary to investigate research questions involving financial accounting information and the capital markets. We will achieve the first objective by examining research on a range of topics in the capital markets area of the accounting literature. The research examined will include classic papers to provide insight into the underlying foundations of the research streams as well as more recent papers to provide insight into contemporary issues. We will achieve the second objective by critically analyzing the methodologies used in each study and by engaging in the execution of empirical research using capital markets data. In this course, you should strive to develop a framework for research that will enhance your ability to investigate accounting issues throughout your career. Research topics covered include the relation between accounting information and stock prices, the role of accounting information and firm valuation, forecasting accounting information, market efficiency, analysts’ forecasts, and management forecasts and voluntary disclosure.
The course is structured in a seminar format. We will thoroughly discuss each paper and carefully analyze the methods used. It is expected that you will read critically and think deeply about the assigned papers before class and be prepared to discuss the readings in detail. Each class meeting will include student-led discussions of the assigned papers and open discussions of related topics of interest. For each paper assigned for the class, each student should prepare a summary and analysis memo. Grades are based on class participation, presentations, a research project, a referee report and a final exam.