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Financial Reporting and Capital Markets

The purpose of this course is to look into the role of financial accounting and reporting in international capital markets. We will do this by giving an overview of current topics in empirical research in financial accounting, with an emphasis on capital-market oriented research. For example, we will look into the decision usefulness and the value relevance of financial statement information. We will discuss how companies make accounting policy choices, they may {\uc1\u8220*}manage{\uc1\u8221*} earnings and other financial statement information; and how financial analysts, investors and other users of financial statements interpret financial accounting information and take decisions based on such information. We will also examine alternative approaches to the regulation of financial reporting, and discuss concepts such as corporate governance, compliance and enforcement. In the course of the lectures you become acquainted with seminal as well as recent state-of-the-art examples of empirical capital-market oriented research.
Course code
ACCT611, ACCT606
Course type
MSc Course
Weekly Hours
2,5
ECTS
5.0
Term
FS 2021
Language
Englisch
Lecturers
Prof. Dr. Martin Glaum
Please note that exchange students obtain a higher number of credits in the BSc-program at WHU than listed here. For further information please contact directly the International Relations Office.

The purpose of this course is to look into the role of financial accounting and reporting in international capital markets. We will do this by giving an overview of current topics in empirical research in financial accounting, with an emphasis on capital-market oriented research. While the course will not concern itself directly with learning accounting rules and regulations, it will deepen your understanding of the role of accounting in financial markets and society in general.

We will cover a variety of topics, including

  • the relevance of financial accounting information to investors,
  • financial accounting in private (family) firms,
  • role of financial analysts in capital markets,
  • consequences of the introduction of IFRS,
  • the reasons for, and the implications of, conservatism in financial reporting,
  • earnings management, and
  • the impact of different corporate governance mechanisms on reporting quality.

The objective of the course is gain a critical in-depth understanding of the role of financial accounting and reporting in international capital markets. In addition, the course will develop your abilities to understand and to critically assess empirical accounting research. We will also discuss the practical relevance of the research for company managers, for investors and other actors in financial markets, as well as for accounting standard setters and financial market oversight bodies.

Date Time
Thursday, 07.01.2021 15:30 - 18:45
Monday, 18.01.2021 15:30 - 18:45
Monday, 25.01.2021 15:30 - 18:45
Thursday, 04.02.2021 11:30 - 15:15
Friday, 12.02.2021 13:45 - 15:15
Tuesday, 16.02.2021 15:30 - 18:45
Tuesday, 23.02.2021 11:30 - 15:15
Thursday, 25.02.2021 13:45 - 17:00
The objective of the course is to gain a critical in-depth understanding of the role of financial accounting and reporting in international capital markets. In addition, the course will develop your abilities to understand and to critically assess empirical accounting research. We will also discuss the practical relevance of the research for company managers, for investors and other actors in financial markets, as well as for accounting standard setters and financial market oversight bodies.
The course will mainly draw on academic research papers; additional readings will include press articles and clippings from annual reports.
Teaching methods will include lectures, group work and exercises as well as in-class discussion.
Group assignment (70%) and two individual assignments (15% each).
International Financial Reporting I (or equivalent)
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