Dr Pascal Frantz MAR 3.30

This course is available on the Global MSc in Management, Global MSc in Management (CEMS MIM), Global MSc in Management (MBA Exchange), MSc in Accounting and Finance and MSc in Accounting, Organisations and Institutions. This course is available with permission as an outside option to students on other programmes where regulations permit.

Other students may be admitted if they have knowledge of financial accounting and finance acquired at undergraduate level, and only with the agreement, in writing, of the MSc Programme Director.

The course is capped to two sections of around 60 students; ie, 120 total. In previous years we have been able to provide places for all students that apply but that may not continue to be the case. Enrolment on this course is constrained by section size and the number of sessions available. Students are admitted on the course on a first-come-first-served basis. If the course is over-subscribed, students on the waiting list will continue to be admitted on a first-come-first-served basis as places become available, but MSc students on the Accounting programmes will only then be given priority although cannot be guaranteed a place if no places become available. Therefore, to avoid frustration and possibly being unable to take the course, students wishing to reduce the risk of non-admittance on the course should prioritise their courses and register early for their preferred, “must have” courses. Late registration or changes to earlier course choices may be unsuccessful.

Investors view firms through the lens of financial accounting and reporting. This course aims to examine this lens by covering topics on the interaction of financial accounting and reporting with capital markets with a focus on corporate disclosure and communication strategies. The course views corporate financial reporting as an information system and reviews the theories and empirical regularities on the demand for and supply of accounting information in capital markets while also assessing the stock market impact of communication strategies.

Some of the topics covered in the course include: The market for information – the role of sell-side analysts, investor relations and the buy-side; Voluntary disclosure theory and practices; Determinants of accounting choices; The signalling role of accounting information; Capital market consequences of accounting and disclosure choices; Investor relations; Capital markets and the earnings game; Corporate governance and financial reporting;  On the role of proxy advisory firms; Corporate governance and shareholder activism; Investor relations during a corporate crisis; Investor relations during equity offerings and mergers and acquisitions.

The course is based on economic-based theories, empirical applications, and case studies, so that students gain an understanding of a firm’s corporate information environment and communication strategies. It has a quantitative flavour as it relies in large parts on game theory. Prior knowledge of game theory is however not a prerequisite as the course introduces the relevant concepts.  Also, the course does not rely on a strong mathematical background.

Detailed choice of subjects to be covered will be determined by those lecturing on the course and may vary to some extent from year to year. Knowledge of basic accounting and finance is assumed.

30 hours of seminars in the AT.

There will be two 90 minute sessions each week. Each session is conducted in groups of about 60 students, often involving case study analyses, application exercises and group presentations and discussions. This mode of teaching requires good advance preparation by the students; hence, every student should be ready to contribute to the discussion when called upon. Active participation is expected and encouraged.

Formative assessment will be in the form of class exercises and case-studies on topics covered during the course. Students will be expected to hand in a single group assignment in the AT.

The course relies mostly on HBR readings, lecture notes, journal articles, and chapters from relevant books supplied in online study packs.

Exam (70%, duration: 2 hours) in the January exam period.
Group assignment (30%) in the AT.

The group work will comprise two assignments, the last one including a presentation.