Doctoral Seminar, SWUFE (Chengdu) , September 2010
Lead by Jim Ohlson (NYU & CKGSB)
Objective: The seminar is intended to provide an overview of capital market research in accounting. Though there will be some discussion of valuation concepts and constructs, most of the time will be spent on the practical aspects of hypotheses development and how researchers identify the appropriate methodologies that allow the research to come to fruition. There will also be discussions concerning writing skills necessary to publish papers in academic journals.
The reading prerequisites are:
(i) Penman, Financial Statement Analysis and Security Valuation, Fourth Edition:
(ii) Brealy and Myers, Corporate Finance, latest edition.
The readings for the various meetings will be announced 2 days in advance. These readings will depend on the audience backgrounds and research interests. However, some of the readings are indicated below.
The topics are as follows:
1. The central aspects of financial statements an how they influence research designs.
Risk and return in finance and accounting research. Is cost-of-capital a practical concept?
2. Continuation: Monahan and Gode’s study (JAR, 2006) of cost-of capital.
3. Accounting data and equity valuation: The basic results. (Ohlson(2009),CAR). The development will be analytical with a focus on what determines a forward P/E.
Accounting data and equity valuation: The big picture. (Richardson & Tinaikar(2004), Accounting and Finnace.
4. Accounting data and accruals. Ohlson(2010), working paper to be distributed
5. Continuation: Sloan’s study (TAR,1996)
6. How to frame a research hypothesis and how to put together research findings in a paper.
