Financial Reporting and Capital Markets: Current Challenges-F-M-

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. For example, we will look into the decision usefulness and the value relevance of financial statement information. We will discuss how companies make accounting policy choices, they may {\uc1\u8220*}manage{\uc1\u8221*} earnings and other financial statement information; and how financial analysts, investors and other users of financial statements interpret financial accounting information and take decisions based on such information. We will also examine alternative approaches to the regulation of financial reporting, and discuss concepts such as corporate governance, compliance and enforcement. In the course of the lectures you become acquainted with seminal as well as recent state-of-the-art examples of empirical capital-market oriented research.