- Module code: IB9AH
- Module name: Accounting Information & Markets
- Department: Warwick Business School
- Credit: 15
Module content and teaching
Although governed by regulation, firms have some discretion in their financial reporting. In this course, students will develop their understanding of how reported accounting numbers affect firm value both directly and via cost of capital. They will learn how firms’ disclosure choices may be perceived by market participants and how this affects the values assigned to those firms. Students will also come to appreciate how accounting is inadequate in some circumstances (e.g. in the presence of R&D) and learn how markets attempt to make sense of companies’ investments in intangible assets
Principal learning outcomes
Subject knowledge and understanding: Explain how various types of accounting information may affect share prices; Understand the range of alternative disclosures available to firms and the incentives influencing disclosure decisions; Describe complex managerial incentives to manipulate accounting numbers; Unravel complicated incentives to develop testable predictions relating to disclosure/earnings management in various situations.Key skills: Use databases to download financial information; Use statistical software to organise, manipulate and analyse data. Cognitive skills: Critically analyse extant research in areas covered by the module; Synthesise existing theoretical and empirical research in order to develop predictions about new situations/environments; Develop research methodologies enabling testing of these hypotheses.Subject specific/professional skills: Practically apply accounting valuation models to real firm data; Critically interpret the outcomes of such calculations, paying due regard to flaws in the models; Summarise and clearly communicate existing evidence and the results of students’ own tests to those interested in firm valuation.
Timetabled teaching activities
Total contact hours: 27 hours; Lectures per week: 18 hours; Seminars per week: 9 hours; Module duration (weeks, if applicable): nine weeks.
|Assessment group||Assessment name||Percentage|
|15 CATS (Module code: IB9AH-15)|
|D1 (Assessed/examined work)||Group Assignment||20%|
|2 hour examination (May)||70%|
This module is available on the following courses:
- MSc in Accounting and Finance (N4N3) - Year 2