The goal of this course is to provide a comprehensive and unified view of how financial accounting is used to:
(1) define contractual relationships between corporate stakeholders and the firm.
(2) monitor the fulfillment of the contractual obligations.
The course also discusses current research areas.
Chapter 1 explains formal and informal contracts. The emphasis is on accounting and reporting choices and disclosure processing costs.
Then, from Chapter 2 to Chapter 6, we will review the literature on how financial accounting information influences governance conflicts with several stakeholders.
Finally, we discuss the role of peers' financial disclosure as an external governance mechanism.
This course does not cover:
- financial accounting & capital markets.
- financial accounting regulation.
- managerial accounting.
Audience: the course is ideal for economics, finance, or accounting PhD students with basic knowledge of microeconomics and contract theory.
References: available in this Zotero Public Group: Corporate Governance and Accounting