Course Description
The information content of accounting information as reflected in changes in security prices and trading volume in financial markets, and other related topics.
Athena Title
CAP MKT ACC RES
Prerequisite
Permission of department
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Course Objectives
This course examines the role of accounting data in financial markets. As an introduction to capital markets, participants study the seminal research documenting how accounting information affects the value of (and trading in) the firm's publicly- held securities. The course also covers the role of information intermediaries, such as financial analysts, and provides an introduction to voluntary disclosure of financial information. Students also explore issues critical to managing an academic career, such as writing for publication in academic journals and navigating the peer review process.
Topical Outline
This course is updated each time it is offered to reflect current research in the area. Students retaking the class will be exposed to new material each time, often from a different professor. Examples of topics to be discussed include: 1. Seminal Research on the Relation between Earnings and Security Prices: A) Association Studies B) Event Studies 2. Earnings Expectations (time-series models vis-a-vis analysts’ forecasts) 3. The Earnings-Return Relation: Earnings Response Coefficients 4. Market Anomalies (e.g., post-earnings-announcement drift; functional fixation) 5. Effects of Accounting Disclosures on Trading in Publicly-Held Securities 6. Determinants and Consequences of Voluntary Disclosure of Accounting Information 7. Writing an Academic Paper 8. Navigating the Peer Review Process This list is for illustrative purposes only. Instructors are not required to cover each of the illustrative topics. Instructors may substitute other current topics that are not listed above.