This is an advanced course that examines positive theories of financial reporting.  Empirical research relating to the use of accounting in contracts, accounting discretion, and the relationship between accounting information and firm value is critically analysed.  The course also examines the key theoretical perspectives essential to the understanding of empirical accounting research.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

This is an advanced course which examines positive theories of financial reporting.  Empirical research relating to the use of accounting in contracts, accounting discretion, and the relationship between accounting information and firm value is critically analysed.  The course also examines the key theoretical perspectives essential to the understanding of empirical accounting research.

This course is designed to provide students with an opportunity to further advance their research skill by taking undertaking directed studies in Commerce. At the end of this course, students should be able to\

1. understand and critically analyse contemporary theoretical and empirical research in financial accounting; and

2. demonstrate the ability to access, process and analyse data used in contemporary empirical accounting research.

Research-Led Teaching

This entirety of this course concerns contemporary research in accounting in fields within which the course convenor is an active researcher.

Required Resources

Technology

You will be required to use the statistical application package Stata in this course. This software is available in most Information Commons computing facilities, and can also be made available on all staff and PhD student computers in offices within the CBE domain.

Recommended Resources

There is no prescribed textbook for this course, however students may wish to access one of the many introductory texts on the use of the Stata statistical package.

Copies of all scholarly articles studied in this course will be made available on Wattle. The weekly reading list will be provided in (or before) Week 1, and contains background reading, core papers (those discussed directly in class) and further reading.

Referencing Requirements

Referencing is to be effected using the Harvard (Author-Date) system, details of which are available at: http://www.anu.edu.au/students/learning-development/academic-integrity

It is of crucial importance that all written work submitted clearly distinguishes the candidate's own work / words from those of other authors. If you have any queries regarding the appropriate method of referencing the content of any of your assessment items please ask the convenor.

Staff Feedback

Students will be given feedback in the following forms in this course:

• written comments
• verbal comments
• feedback to whole class, groups and individuals

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

ASSESSMENT REQUIREMENTS

Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.

COMMUNICATION

Email and the Wattle Course Website

Email and the Wattle course website are the preferred ways of communication.

If necessary, the lecturer and tutors for this course will contact students on their official ANU student email address. Students should use this email address when contacting staff as spam filters used by ANU may not allow other email addresses to be received. Information about your enrolment and fees from the Registrar and Student Services' office will also be sent to this email address.

 

Announcements

Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Introduction to Empirical Accounting Research Methods Stata Module I
2	Earnings Management
3	Analyst Forecasts and Financial Reporting Stata Lab (To Be Held Outside Lecture Time) Stata Modules II, III and IV
4	Analyst Investment Recommendations
5	Accrual Anomaly and Related Topics
6	Accruals Quality and its Relation to Stock Prices Stata Lab (To Be Held Outside Lecture Time) Module V, VI VII
7	Accounting and Tax Differences and Earnings Quality	Practical Research Assignment Part 1 Due Monday 21 September 10am
8	Managers and Insiders
9	Accounting and Debt Markets
10	Accounting and the Cost of Equity Capital
11	Strategy, Life-Cycle and Financial Reporting
12	Review and Presentation of Practical Research Assignments	Practical Research Assignment Presentations During Class Time Part 2 Due Monday 9 November 10am

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Seminar Critiques and Presentations	30 %	03/08/2020	30/10/2020	1
Practical Research Assignment – Part I	20 %	21/09/2020	23/09/2020	1,2
Practical Research Assignment – Part II	40 %	09/11/2020	03/12/2020	1,2
Participation in Seminar Discussions	10 %	27/07/2020	30/10/2020	1

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Integrity . In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

See Assessment Task 4.

Examination(s)

Not applicable.

Assessment Task 1

Seminar Critiques and Presentations

It is likely that our weekly seminars will be conducted on campus in face-to-face mode. Each student will be required to lead the class discussion on an academic paper on at least three occasions (the required number of presentations will be finalised in Week 1 once enrolment numbers are confirmed). While you are not expected to present a complete ‘lecture’ on your topic, you should prepare a small number of PowerPoint slides highlighting key issues / tables / equations / diagrams relevant to your readings. For the papers that you are assigned as the discussion leader, you will also be required to submit a written critique of the paper, of approximately 4 pages (1.5 spaced) in length. The written submission is due by 12 noon on the day prior to the seminar (email submission is preferred). You will be assessed on your demonstrated understanding of the assigned article(s) and their relevance to key issues studied in this course. Your grade will also reflect the extent to which you have responded to feedback provided with respect to assessment submitted earlier in the course.

Due date: The due date listed in the assessment summary is the earliest possible date. This assessment task is assessed weekly.

Return date: The return date listed in the assessment summary is the earliest possible date. This assessment task is returned in the week following submission. All students will have received feedback on at least one Seminar Critique before the end of Week 6.

Assessment Task 2

Practical Research Assignment – Part I

The practical research assignment will require you to conduct empirical research on a sample of real firms. This assignment will be completed in two stages. In Part 1 (Assessment Task 2) candidates will be required to:

• identify a research topic relating to the relation between properties of analyst forecasts and financial reporting
• identify and analyse literature relevant to the topic, and prepare a spreadsheet table classifying relevant papers according to numerous criteria
• develop at least one testable hypothesis
• obtain, process and analyse archival data used to test the hypothesis (this will require candidates to merge data from different sources and to develop advanced skills in data manipulation)
• design appropriate empirical tests of the hypotheses, execute these tests and analyse results
• Write up findings in the form of a preliminary report, emphasising the motivation for the study, the essential logic behind the hypothesis, the properties of the sample and the initial test results

Candidates will be given extensive and specific feedback on the Preliminary Report (i.e Part 1), which they are then required to implement in completing Assignment Part 2 (Assessment Task 3), which requires the candidate to write up their final results in the form of a scholarly journal article. The course convenor will be available to meet with students to discuss the progress of their assignment throughout the semester. 

Assessment Task 3

Practical Research Assignment – Part II

The practical research assignment will require you conduct empirical research on a sample of real firms. This assignment will be completed in two stages. In Part 1 (Assessment Task 2) candidates will be required to:

• identify a research topic relating to the relation between properties of analyst forecasts and financial reporting
• identify and analyse literature relevant to the topic, and prepare a spreadsheet table classifying relevant papers according to numerous criteria
• develop at least one testable hypothesis
• obtain, process and analyse archival data used to test the hypothesis (this will require candidates to merge data from different sources and to develop advanced skills in data manipulation)
• design appropriate empirical tests of the hypotheses, execute these tests and analyse results
• Write up findings in the form of a preliminary report, emphasising the motivation for the study, the essential logic behind the hypothesis, the properties of the sample and the initial test results

Candidates will be given extensive and specific feedback on the Preliminary Report (i.e Part 1), which they are then required to implement in completing Assignment Part 2 (Assessment Task 3), which requires the candidate to write up their final results in the form of a scholarly journal article. The course convenor will be available to meet with students to discuss the progress of their assignment throughout the semester. 

In the final 1 or 2 teaching weeks, candidates will be required to present their draft research project to the class. While the presentation is not formally assessed, the mark awarded for the final written submission of the research assignment will take into account the extent to which the written submission addresses feedback provided during the development of the research project.

Assessment Task 4

Participation in Seminar Discussions

You will be awarded a grade reflecting the frequency and quality of your contributions to seminar discussions throughout the course. The grade awarded will reflect your demonstrated understanding of and ability to critically analyse contemporary theoretical and empirical research in financial accounting, and to formulate well-reasoned and coherent arguments in reaching well-considered conclusions. This mark is independent of that awarded under Assessment Task 1, meaning that the assessment of this task focuses on your performance when you are not leading the discussion of a particular paper. Failure to attend classes will affect your participation grade.

Due date: The due date listed in the assessment summary is the earliest possible date. This assessment task is assessed on the basis of your weekly contributions to class discussion throughout the semester.

Return date: The return date listed in the assessment summary is the earliest possible date.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.

The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

Individual assessment tasks may or may not allow for late submission. Policy regarding late submission is detailed below:

• Late submission permitted. Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item. Late submission is not accepted for take-home examinations.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Assignments may be returned to students via email (seminar critiques) or via Wattle / Turnitin (Practical Research Assignments Part I and II).

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

There is no provision for the resubmission of assignments.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students