The course will cover selected topics in accounting theory, accounting research and methods in positive accounting research. After a comprehensive introduction on how to strategically read and comprehend research papers, we discuss selected topics in accounting research and theory supported by examples. The course aims at providing students with answers to the big picture question on why accounting standards and accounting practices are designed and undertaken as they are today. Specifically, we try to provide answers to the following questions:

Under which conditions can accounting information help to improve investment decisions of investors?

• How do capital markets process accounting information (earnings announcements, annual reports, quarterly reports etc.)?
• Is accounting information useful to investors? To what extent and under which conditions?
• Is accounting information relevant in the context of the Conceptual Framework? Under which conditions?
• Is accounting information reliable in the context of the Conceptual Framework? Under which conditions?
• Why and how do managers manage earnings? Is earnings management always adverse? Why/Why not?

Under which conditions can accounting information improve the efficiency of contracts (e.g. compensation contracts to motivate managers or debt contracts)?

After successfully completing this course, students will have a better understanding of accounting theory and why accounting is practiced as it is practiced today. The course will help students to get a deeper understanding on accounting helping them to better learn, understand and evaluate accounting standards and regulation in the future. Overall, the course intends to shape students' critical mindset.

Additionally, the course is intended to provide students with a step-by-step framework to read and analyze research papers helping them to be better prepared to write a Bachelor’s thesis not only in the area of accounting, but also Finance etc.

To provide students with the technical skills to read and understand research in international accounting (and other areas such as finance), the course will provide students with a step-by-step framework to read and analyze research papers in the area of international accounting. Specifically, after successfully completing this course students will be able to

• read and understand research papers in international accounting. Specifically, after successfully completing the course students will be able to
  • understand how academic papers are typically structured,
  • identify an academic paper’s research question and its motivation,
  • identify the theoretical body of an academic paper and its hypotheses and/or predictions,
  • identify the methodological approach used in the paper to answer the research question,
  • identify the results of an academic paper and put them into perspective.
• conduct a thorough and comprehensive literature review of a given research question and/or topic. Specifically, after successfully completing the course students will be able to
  • search and retrieve academic papers in international accounting research using common databases,
  • find related and similar literature for a given academic paper,
  • place academic papers in a body of prior academic research related to the research question,
  • differentiate between different stages of academic research (working paper vs. publication),

This course will not provide students with the following skills:

1. Students will not learn how to cite and manage academic research. The WU library specifically provides courses for students who are interested in this topic.

2. Students will not learn about formalities of academic research.

PI - 80% minimum presence in lectures.

The course provides a good overview on accounting theory and related research covering the most important studies in the area. Research is discussed based on a given framework to read and analyze research papers. Examples are given throughout the course for better understanding. Students will have to carry out a small project on their own to deepen the knowledge. 

Students’ assessment is based on multiple types of assessment to provide students with extensive opportunities to demonstrate their acquired skills.

1. Project (40% of course grading)

Further information on the project will be announced in the first lectures of the course.

2. Final written exam at the end of the course (40% of course grading)

Students are supposed to take a final exam at the end of the course, which covers the topics and techniques dealt with in the course.

3. Home Assignments and in-class participation (20% of course grading)

Further information on the home assignments (to prepare the contents of the next unit) as well as in-class participation will be announced in the first lectures of the course.