3. Tentative Course Outline The course outline is likely to be revised as the course proceeds. The tentative course outline is as follows: Week Date Topic 1 09/02/2015 Topic 1: Introduction and Overview of my Research (Yaniv) 2 09/09/2015 Topic 2: Cost of Capital; Accounting Quality (Henry) 3 09/16/2015 Topic 3: Information Content of Earnings Announcements and the Post-Earnings-Announcement Drift (Nika + Help) 4 09/23/2015 Topic 4: Earnings Management (Sam + 20 min by Merve) 5 09/30/2015 External Presentation 6 10/07/2015 External Presentation 7 10/14/2015 Topic 5: Accruals and Cash Flows (Jin) 8 10/21/2015 Topic 6: Financial Statement Analysis (Annika + John) 9 10/28/2015 Topics 7-8 Combined (Margaret + Sumit + Nika): Topic 7: Accounting Information and the Macroeconomy Topic 8: Ongoing Macro-Accounting Research 10 11/03/2015 (Tue) 11 11/11/2015 Topic 9: Fall Recess 12 11/17/2015 (Tue) Topic 10: Mispricing (Jin) 13 11/23/2015 (Mon) Topics 11-12 Combined (several presenters): Topic 11: Highlights from Various Research Topics Debt Contracting (30 min by Sumit) Textual Analysis (20 min by Sam) Corporate Governance (30 min by Nika) Accounting and the Bond Market Other Topic 12: Additions; Recent Research Highlights; Concurrent Research Updates 15 12/02/2015 Topic 13: Presentations of Research Proposals (split between students in years 2, 3, and 4) 16 12/07/2015 (Mon; Strictly Mandatory) Topic 13: Presentations of Research Proposals (Contd.) 16 12/10/2015 Official Classes End Date Further details are as follows: Topic 1: Introduction and Overview of my Research Konchitchki, Y. 2011. “” The Accounting Review 86 (3), 1045–1085.
Dechow, P. M., and I. D. Dichev. 2002. “The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors.” The Accounting Review 77, 35–59. (Discuss only a few minutes) Diamond, D. W., and R. E. Verrecchia. 1991. “Disclosure, Liquidity, and the Cost of Capital.” The Journal of Finance 46, 1325–1359. Gebhardt, W. R., C.M.C. Lee, and B. Swaminathan. 2001. “Toward an Implied Journal of Accounting Research, 135–176. Easton, P., and S. Monahan. 2005. “An Evaluation of Accounting-Based Measures of Expected Returns.” The Accounting Review 80, 501–538. Lambert, R., C. Leuz, and R. Verrecchia. 2007. “Accounting Information, Disclosure, and the Cost of Capital.” Journal of Accounting Research 45, 385–420. Amihud, Y., and H. Mendelson. 1986. “Asset Pricing and the bid-ask spread. Journal of Financial Economics 17, 223–249. Topic 3: Information Content of Earnings Announcements and the Post-Earnings-Announcement Drift Ball, R., and P. Brown. 1968. “An Empirical Evaluation of Accounting Income Numbers.” Journal of Accounting Research, 159–178. Beaver, W. H. 1968. “The Information Content of Annual Earnings Announcements.” Journal of Accounting Research, 67–92. Landsman, W. R., and E. Maydew. 2002. “Has the Information Content of Quarterly Earnings Announcements Declined over the Past Three Decades?” Journal of Accounting Research, 797–808. Kothari, S. P. 2001. “Capital Markets Research in Accounting.” Journal of Accounting and Economics, 105–231. Bernard, V., and J. Thomas. 1990. “Evidence That Stock Prices Do Not Fully Reflect the Implications of Current Earnings for Future Earnings.” Journal of Accounting and Economics, 305–340. Konchitchki, Y., and D. E. O’Leary. 2011. “.” International Journal of Accounting Information Systems 12 (2), 99–115.
Quality and Financing and Investment: Evidence from Changes in Financing Capacity.” Journal of Accounting Research 52 (1), 1–36. Konchitchki, Y., and P. N. Patatoukas. 2015a. “Accounting and the Macroeconomy: Accounting Quality at the Macro Level.” Working Paper. Konchitchki, Y., and P. N. Patatoukas. 2015b. “Revisions to Official Macroeconomic Announcements and Firm-Level Financial Information.” Working Paper. Background papers: Fama, E. F. 1981. “Stock Returns, Real Activity, Inflation, and Money.” The American Economic Review 71 (4), 545–565. Fama, E. F., and W. G. Schwert. 1977. “Asset Returns and Inflation.” Journal of Financial Economics 5 (2), 115–146. Topic 10: Mispricing Fama, E. 1991. “Efficient Capital Markets: II” The Journal of Finance, 1575–1617. Abarbanell, J., and V. Bernard. 1992. “Tests of Analysts’ Overreaction/Underreaction to Earnings Information as an Explanation for Anomalous Stock Price Behavior.” The Journal of Finance, 1181–1207. Sloan, R. G. 1996. “Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings?” The Accounting Review 71 (3), 289–315. Ball, R., and E. Bartov. 1996. “How Naive is the Stock Market’s Use of Earnings Information?” s 21 (3), 319–337. Skinner, D., and R. Sloan. 2002. “Earnings Surprises, Growth Expectations, and Stock Returns or Don’t Let and Earnings Torpedo Sink Your Portfolio.” Review of Accounting Studies, 289–312. Konchitchki, Y. 2013. “” Financial Analysts Journal 69 (6), 40–54. Grossman, S. J., and J. E. Stiglitz. 1980. “On the Impossibility of Informationally Efficient Markets.” The American Economic Review 70 (3), 393–408.
TOPIC 11: HIGHLIGHTS FROM VARIOUS RESEARCH TOPICS TOPIC 12: ADDITIONS; RECENT RESEARCH HIGHLIGHTS; CONCURRENT RESEARCH UPDATES M&As Textual Analysis Corporate Governance Accounting and the Bond Market Other A: Accounting and the Bond Market Easton, P., S. Monahan, and F. P. Vasvari. 2009. “Some initial evidence on the role of accounting earnings in the bond market.” Journal of Accounting and Economics 47, DeFond, M. L., and J. Zhang. 2013. “The Timeliness of the Bond Market Reaction to Bad Earnings News.” Contemporary Accounting Research, forthcoming. Bhojraj, S., and B. Swaminathan. 2009. “How does the Corporate Bond Market Value Capital Investments and Accruals?” Review of Accounting Studies 14 (1), 31–62 Kwan, S. H. 1996. “Firm-Specific Information and the Correlation between Individual Stocks and Bonds” Journal of Financial Economics 40 (1), 63–80. Callen, J., J. Livnat, and D. Segal. 2009. “The Impact of Earnings on the Pricing of Credit Default Swaps.” The Accounting Review 84, 1363–1394. Lok, S., and S. Richardson. 2011. “Credit Markets and Financial Information.” Review of Accounting Studies 16, 487–500. B. OTHER Kravet, T. D. 2014. “Accounting Conservatism and Managerial Risk-Taking: Corporate Acquisitions.” Journal of Accounting and Economics 57 (2-3), 218–240. Louis. 2005. “Acquirers' Abnormal Returns and the Non-Big 4 Auditor Clientele Effect.” Journal of Accounting and Economics 40 (), 75–99. Topic 13: Presentations of Research Proposals 12/10/2013: Official End Date of Classes