Financial Reporting and Capital Markets: Current Challenges - (F) - Q3

Participation Prerequisites

International Financial Reporting I (or equivalent)

Course Content

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.

Intended Learning Outcomes and Competencies

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.

Another objective of this course is to introduce you to academic research in the area of financial reporting. Gaining competencies with regard to academic research will equip you with essential expertise for your subsequent Master thesis. A further benefit of the course is that you will train your presentation skills, an important competency for executives and academics alike.

Form of Examination

Literature

The course will mainly draw on academic research papers; additional readings will include press articles and clippings from annual reports.