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2021/2022  KAN-CCMVV2417U  Accounting Research Seminar

English Title
Accounting Research Seminar

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 40
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Bjørn N. Jørgensen - Department of Accounting (AA)
Main academic disciplines
  • Accounting
Teaching methods
  • Face-to-face teaching
Last updated on 15-02-2021

Relevant links
Learning objectives
After completion of the course, students are expected to be able to:
  • Read and understand research articles related to financial accounting
  • Structure the presentation in class of a research-based article
  • Describe some of the capital market consequences from the introduction of IFRS
  • Discuss the use of accounting information with focus on information processing in the capital markets
  • Summarize the research presented during the course lectures
  • Combine accounting, corporate governance and finance
  • Write an extended synopsis of a research proposal
Course prerequisites
Students are expected to have prior classes in financial accounting and corporate finance.
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 1
Compulsory home assignments
The student must get approval for 1 out of 2 assignments in order to attend the ordinary exam. The compulsory assignments are:

Assignment 1: Each group of students presents an article in accounting from the curriculum. The students have to pass the presentation.

Assignment 2: Individual assignment

The student will not have extra attempts to get the required number of compulsory activities approved prior to the ordinary exam. If the student has not received approval for the required number of compulsory activities or has been ill, the student cannot participate in ordinary exam. Prior to the retake the student will be given an extra attempt..The extra attempt is a 10 page home assignment that will cover the required number of compulsory activities. If approved, the student will be able to attend retake. Please note that students must have made an effort in the allocated assignments thoughout the course. Students that do not participate in the assignments (no show/U) are not entitled to the extra assignment and will have to wait until the next ordinary exam to complete the course.
Examination
Accounting Research Seminar:
Exam ECTS 7,5
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance, see also the rules about examination forms in the programme regulations.
Individual or group exam Oral group exam based on written group product
Number of people in the group 2-4
Size of written product Max. 20 pages
Definition of number of pages:
Groups of
2 students 10 pages max.
3 students 15 pages max.
4 students 20 pages max.

Students who wish to have an individual exam might be able to write a term paper in the course. Please see find more information on term papers on the students intranet.
Assignment type Synopsis
Duration
Written product to be submitted on specified date and time.
15 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Grading scale 7-point grading scale
Examiner(s) Internal examiner and second internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
The original written synopsis can be edited.
Description of the exam procedure

The student starts the exam with a brief presentation of the written synopsis.
Course content, structure and pedagogical approach

Course objectives: 

This masters accounting research seminar introduces cutting-edge accounting research and providing updated empirical-archival small sample evidence in the Nordic setting.

 

Motivation for this course:

Accounting is a practical discipline with many interesting topics. Yet students may struggle to identify research topics for their thesis projects. The purpose of this study is to introduce students to some current topics that can readily be supervised by faculty in the accounting department.

 

Content:

The syllabus covers a variety of current research topics in fiancial accounting and auditing that are intended to inspire and help students pick topics for their thesis.

 

Pedagogy:

The students present accounting research papers in groups. Students write an extended synopsis of a research proposal prior to the oral exam of that written product.

In addition, students get (ungraded) assignments to illustrate the topics covered in prior research.

 
Description of the teaching methods
Lectures. Each group of students presents an article in accounting from the curriculum.
Feedback during the teaching period
Students receive feedback on their group presentation.

In addition, each student selects a company in Denmark or the Nordic countries to illustrate some of the topics covered in the curiculum through practical examples.


Student workload
Classes (12 meetings of each 3 times 45 minutter) 36 hours
Preparation for group presentation in class 40 hours
Read the articles in the curriculum 60 hours
Write synopsis of a proposed research project 50 hours
Solve applied problems using Nordic firms' annual reports 20 hours
Further Information

 

 
Expected literature

Topic 1:        Accounting for football

Amir, Eli, and Gilad Livne. 2005. Accounting, valuation and duration of football player contracts. Journal of Business Finance & Accounting 32 (3-4): 549-586.

Kleven, Henrik Jacobsen, Camille Landais, and Emmanuel Saez. 2013. Taxation and international migration of superstars: Evidence from the European football market. American Economic Review 103 (5): 1892-1924.

 

Topic 2:        Mandatory disclosure and auditing

Jamal, Karim, Michael Maier, and Shyam Sunder. 2004. Privacy in e‐commerce: Development of reporting standards, disclosure, and assurance services in an unregulated market. Journal of Accounting Research 41 (2): 285-309.

Jin, Ginger Zhe, and Phillip Leslie. 2003. The effect of information on product quality: Evidence from restaurant hygiene grade cards. The Quarterly Journal of Economics 118 (2): 409-451.

Bernard, Darren. 2016. Is the risk of product market predation a cost of disclosure?. Journal of Accounting and Economics 62 (2-3): 305-325.

 

Topic 3:        Harmonization and accounting standards

Livne, Gilad, and Maureen McNichols. 2009. An empirical investigation of the true and fair override in the United Kingdom. Journal of Business Finance & Accounting 36 (1‐2): 1-30.

Dye, Ronald A., and Shyam Sunder. 2001. Why not allow FASB and IASB standards to compete in the US?. Accounting Horizons 15 (3): 257-271.

Dye, Ronald A., Jonathan C. Glover, and Shyam Sunder. 2015. Financial engineering and the arms race between accounting standard setters and preparers. Accounting Horizons 29 (2): 265-295.

Kamp, Bart. 2002. Fiscal year-end choice: determinants and dynamics. The International Journal of Accounting 37 (4): 421-427.

 

Topic 4:        Market reaction to public disclosures of earnings and cash flows

Plenborg, Thomas. 1999. An examination of the information content of Danish earnings and cash flows. Accounting and business research30 (1): 43-55.

Bhattacharya, Utpal, Hazem Daouk, Brian Jorgenson, and Carl-Heinrich Kehr. 2000. When an event is not an event: the curious case of an emerging market. Journal of Financial Economics 55 (1): 69-101.

Dechow, Patricia M. 1994. Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of Accounting and Economics 18 (1): 3-42.

 

Topic 5:        Anomalies related to earnings and cash flows

Sloan, Richard G. 1996. Do stock prices fully reflect information in accruals and cash flows about future earnings?. Accounting Review 71 (3): 289-315.

Lewellen, Jonathan, and Robert J. Resutek. 2019. Why do accruals predict earnings?. Journal of Accounting and Economics 67 (2-3): 336-356.

 

Topic 6:        Value investing

Piotroski, Joseph D. 2000. Value investing: The use of historical financial statement information to separate winners from losers. Journal of Accounting Research 38 (Supplement): 1-41.

Mohanram, Partha S. 2005. Separating winners from losers among low book-to-market stocks using financial statement analysis. Review of Accounting Studies 10 (2-3): 133-170.

 

Topic 7:        Earnings management

Carslaw, Charles A. P. N. 1988. Anomalies in income numbers: Evidence of goal oriented behavior. TheAccounting Review 63 (2): 321-327.

Thomas, J. 1989. Unusual patterns in reported earnings. The Accounting Review 64 (4): 773-787.

Amiram, Dan, Zahn Bozanic, and Ethan Rouen. 2015. Financial statement errors: Evidence from the distributional properties of financial statement numbers. Review of Accounting Studies 20 (4): 1540-1593.

Schipper, Katherine. 1989. Earnings management. Accounting Horizons 3 (4): 91-102.

 

Topic 8:        Classifications shifting

McVay, Sarah E. 2006. Earnings management using classification shifting: An examination of core earnings and special items. The Accounting Review 81 (3): 501-531.

Gordon, Elizabeth A., Elaine Henry, Bjorn N. Jorgensen, and Cheryl L. Linthicum. 2017. Flexibility in cash-flow classification under IFRS: determinants and consequences. Review of Accounting Studies 22 (2): 839-872.

 

Topic 9:        Earnings management and auditing – Nordic evidence

Christoffersen, Jeppe, Thomas Plenborg, and Morten Seitz. 2020. Earnings management in owner-managed firms.

Feldhues, Melanie L., and Morten Holm. 2020. CEO Life History strategies and financial reporting quality.

Hope, Ole‐Kristian, and John Christian Langli. 2010. Auditor independence in a private firm and low litigation risk setting. The Accounting Review 85 (2): 573-605.

Kallunki, Jenni, Juha‐Pekka Kallunki, Lasse Niemi, Henrik Nilsson, and Daniel Aobdia. 2019. IQ and audit quality: Do smarter auditors deliver better audits?. Contemporary Accounting Research 36, (3): 1373-1416.

 

Topic 10:      Balance Sheet management

Bernard, Darren, David Burgstahler, and Devrimi Kaya. 2018. Size management by European private firms to minimize proprietary costs of disclosure. Journal of Accounting and Economics 66 (1): 94-122.

Bernard, D., D. Kaya, & J. Wertz. 2020. Entry and capital structure mimicking in concentrated markets: The role of incumbents’ financial disclosures. JAE (forthcoming).

 

Topic 11:      IFRS adoption and market reactions

Armstrong, Christopher S., Mary E. Barth, Alan D. Jagolinzer, and Edward J. Riedl. 2010. Market reaction to the adoption of IFRS in Europe. The Accounting Review 85 (1): 31-61.

Joos, Philip PM, and Edith Leung. 2013. Investor perceptions of potential IFRS adoption in the United States. The Accounting Review 88 (2): 577-609.

Wang, Clare. 2014. Accounting standards harmonization and financial statement comparability: Evidence from transnational information transfer. Journal of Accounting Research 52 (4): 955-992.

 

Topic 12:      Environmental and non-financial information

D'Souza, Julia, John Jacob, and Naomi S. Soderstrom. 2000. Nuclear decommissioning costs: The impact of recoverability risk on valuation. Journal of Accounting and Economics 29 (2): 207-230.

Chen, Hui, Peter Letmathe, and Naomi Soderstrom. 2020. Reporting Bias and Monitoring in Clean Development Mechanism Projects. Contemporary Accounting Research (forthcoming).

 
Last updated on 15-02-2021