Financial Reporting and Capital Markets: Current Challenges

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.