Accounting for Financial Markets
Full course description
The objective of the course is to understand the relevance of financial statement information for investors, financial analysts, banks, managers, and other parties with a financial interest in a firm. Financial statements contain valuable information for various decision-making contexts. Mergers, acquisitions, takeovers, distress prediction, credit analysis, and security analysis require full awareness of the financial position of the firm. This course teaches you the language of financial analysis and firm valuation. Therefore, this course is relevant for everyone who is interested in the role of financial and accounting information in capital markets. In order to gain understanding of financial statement analysis, the course uses cases appropriate for various contexts and discusses several research articles.
- analysing firms’ accounting choices, identifying distortions to the financial statements, and undoing such distortions
- analysing financial statements in the context of firms’ stated goals and strategy
- preparing prospective financial statements, assessing the value of firms, and understanding differences in the usefulness of various valuation methods
- applying financial analysis tools in credit analyses and analyses of mergers and acquisitions
Students are expected to have sufficient knowledge of financial accounting (e.g., at the level of an intermediate accounting course). Further student should have a basic understanding of (corporate) finance. Exchange students need to have obtained a bachelor degree with a major in business.
- Business Analysis and Valuation - IFRS edition (4th edition) by Palepu, Healy & Peek.
- P.J. Vorst
- M.F. van Peteghem