Teaching

2. Semester Bachelor of Science Program / Spring Term 2013
Lecturer: Prof. Dr. Igor Goncharov
Language of instruction: English
Contact Hours: 2 SWS
Credits: 3

Course Content:
This course adopts the standpoint of the user of financial accounting information, taking the firm's financial statements, notes and other accompanying information as a basis for understanding the firm's past business activities and forecasting its future business activities. From the perspectives of (external) equity investors and financial analysts as well as creditors (banks, rating agencies), it will cover traditional financial ratios as well as basic forecasting and equity valuation techniques in order to develop a fundamental assessment of a firm's profitability, financial stability and prospects, thereby ultimately assessing firm value. Because the focus of this course is on analysis and valuation from a financial accounting perspective, it will adopt a specific accounting perspective on the valuation and forecasting process.

Prerequisites:
Foundations of Financial Accounting

Grading:
Final Exam and Case

Teaching Methods:
Lecture with hands-on examples and case studies

Applied Theories and Methods:
Accounting theory, capital markets theory, investment theory, valuation

Basic Readings:
Lundholm/Sloan, Equity Valuation and Analysis (with eVal), 3rd edition, Boston et al.: McGraw-Hill/Irwin 2010

Optional Readings:
To be announced in class

Doctoral Studies / Spring Term 2013
Lecturer: Prof. Dr. Igor Goncharov
Language of instruction: English

Course content:

The course aims to introduce students to conducting empirical research using Stata. The course will include the following topic areas: (a) using Stata to manage a dataset and conduct tests, (b) typical issues and choices faced by a researcher when analyzing archival data, and (c) conducting and reporting univariate and (advanced) multivariate tests. The aim of the course is to provide for an efficient way to obtain a full set of research results using Stata. Univariate tests covered include: correlations, tests for comparing means and medians, and the chi2-test. Multivariate tests encompass OLS regression, fixed and random effects regressions, latent variable models (probit/logit), two-stage and three-stage regressions, treatment effect and Heckman selection models.

The course starts with the discussion of how to develop a research strategy based on the research question. Then it will guide the students through the process of data selection and the typical information reported in financial databanks. After an introduction session on Stata, the students will learn data management techniques, which are involved in creating new variables and selecting the test sample (including merging and matching different samples). The students will further learn how to efficiently implement Stata commands to generate descriptive, univariate and multivariate evidence. The course will also show how to interpret the results (including dealing with interaction terms), how to compare estimates (coefficients, R2s) within and between the models, and how to generate further statistics based on the set of fitted results (e.g., predicted effects). Finally, the course will introduce students to a typical set of robustness checks and to statistical issues with outliers, adjusting standard errors, and dealing with endogeneity and selectivity problems. This will lead to a discussion of how a research paper typically reports results.

Prerequisites:

Understanding of basic econometric techniques. The best learning experience is achieved when students have already participated in the course "Advanced Econometrics I".

Grading:

Individual assignment.

Teaching Methods:

Seminars with a direct application of discussed content. Participants are required to have a notebook with the installed version of Stata. Students versions of Stata could be acquired from: Dittrich & Partner Consulting GmbH (anke.mrosek@dpc.de).

The course will be blocked and include 5 sessions during a three week period in May/beginning of June.

Basic Readings:

Articles that will form a basis for discussion will be announced to course participants in the beginning of the course.

Optional Readings:

Wooldridge, J. (2009) Introductory Econometrics: A Modern Approach, 4e, ISBN-13: 9780324788907.
Wooldridge, J. (2010) Econometric Analysis of Cross Section and Panel Data, 2e, ISBN-13: 9780262232586.

1. Semester Master of Science Program / Fall Term 2012
Lecturer: Prof. Dr. Igor Goncharov
Language of instruction: English
Contact Hours: 2 SWS
Credits: 3

Course Content:
This course is concerned with both the theory and practice of business analysis and valuation. The course content will include strategy analysis, accounting analysis, main issues with IFRS implementation, ratio analysis and using valuation techniques based on pricing multiples and more advanced valuation models. Strong emphasis is placed on developing practical skills such as identifying pros and cons of a business strategy, finding "red flags" in financial analysis, tracing earnings management and implementing forecasting and valuation tools. On the theory side, the course will introduce valuation models and use recent empirical research in financial accounting to help identify concerns with an accounting strategy and point to potential mispricing. On the practice side, the course will cover six cases that emphasize different aspects of business analysis and valuation. The case companies cover different industries and are situated in a number of European countries and the US.

Prerequisites:
Accounting (BSc or equivalent)

Grading:
Group cases and an individual project

Teaching methods:
Lecture with examples and case studies

Applied Theories and Methods:

Information asymmetry, principal-agent theory, positive accounting theory, theory of valuation

Basic Readings:
Palepu/Healy/Peek, Business Analysis and Valuation: IFRS edition, 2 ed. 2010

Optional Readings:

Any book that covers IFRS at an advanced level, for example: Alfredson/Picker/Loftus/Clark/Wise/Dyki, Applying International Financial Reporting Standards, 2. ed. 2009.