Financial Accounting Theory Sixth Edition William R. Scott Chapter 1

Financial Accounting Theory Sixth Edition William R. Scott

Purpose: To create an awareness and understanding of the financial reporting environment in a market economy

DR THOMAS WU

thomaswu@uic.edu.hk www.drthomaswu.com

everything here !

grade

• final exam 50% • mid-term test (up to and including chapter 4) 20% • group project on research paper 25%

– in class presentation 10% – group report 15%

• class participation 5%

group project

• • • • • 9 research papers 9 groups of about 5 members each each paper relating to a particular topic of our class presentation near when topic is being taught finalize group members and research paper selection today

presentation topics

Presentation 1: Ball, R. & Brown, P. (1968). An empirical evaluation of accounting income numbers. Presentation 2: Bok, B. , Jun, K.K. , Jin M.K. (2010). Local institutional investors, information asymmetries and equity returns. Presentation 3: Barton, J. & Mercer, M. (2005). To blame or not to blame: Analyst’s reactions to external explanations for poor financial performance. Presentation 4: Healy, P. (1985). The effect of bonus schemes on accounting decisions. Presentation 5: Beatty, A., Ramesh, K. and Weber, J. (2001). The importance of accounting changes in debt contracts: The cost of flexibility in covenant calculations. Presentation 6: Matsumura, E. and Shin, J.Y. (2006). An empirical analysis of an incentive plan with relative performance measures: evidence from a postal service. Presentation 7: Gayle, G.L. , Miller, R. (2009). Has moral hazard become a more important factor in managerial compensation? Presentation 8: Zhang, Y., Uchida, K., and Hua B. (2013). How do accounting standards and insiders’ incentives affect earnings management? Evidence from China. Presentation 9 : Wang, X. (2011). The quality of financial reporting in China: An examination from an accounting restatement perspective.

3 big topics

• big topic 1 – chapter 2 to 6

– if you are the one...