BSA

The goal of this course is to develop the ability to conduct empirical research on (1) the role of accounting information in the firm (i.e., contracting and corporate governance, (2) how managers choose to exercise their discretion to implement their firms’ financial accounting, reporting, and disclosure strategies. In doing so, we will develop an understanding of the economic, finance, and accounting theory that underlies empirical accounting research. As we go through each study in this class we will focus on identifying and understanding three critical elements of each study: (1) the research question, (2) the motivation, and (3) the research design. An author must describe the incremental contribution to the literature to motivate his paper. Therefore, we will also build an understanding of the major results in the literature and evaluate the strength and weaknesses of each study.

This course deals mainly with consolidation and mergers, parent-subsidiary relationships, and consolidated statements, including foreign subsidiaries. The other topics deal with accounting for the effects of changes in foreign exchange rates, financial reporting in hyperinflationary economies, and accounting for derivatives and hedging transactions.