AC417      Half Unit
Corporate Financial Disclosure and Investor Relations

This information is for the 2025/26 session.

Course Convenor

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Investors view firms through the lens of financial accounting and reporting. This course aims to examine this lens by covering topics on the interaction of financial accounting and reporting with capital markets with a focus on corporate disclosure and communication strategies. The course views corporate financial reporting as an information system and reviews the theories and empirical regularities on the demand for and supply of accounting information in capital markets while also assessing the stock market impact of communication strategies.

Some of the topics covered in the course include: The market for information – the role of sell-side analysts, investor relations and the buy-side; Voluntary disclosure theory and practices; Determinants of accounting choices; The signalling role of accounting information; Capital market consequences of accounting and disclosure choices; Investor relations; Capital markets and the earnings game; Corporate governance and financial reporting;  On the role of proxy advisory firms; Corporate governance and shareholder activism; Investor relations during a corporate crisis; Investor relations during equity offerings and mergers and acquisitions.

The course is based on economic-based theories, empirical applications, and case studies, so that students gain an understanding of a firm’s corporate information environment and communication strategies. It has a quantitative flavour as it relies in large parts on game theory. Prior knowledge of game theory is however not a prerequisite as the course introduces the relevant concepts.  Also, the course does not rely on a strong mathematical background.

Detailed choice of subjects to be covered will be determined by those lecturing on the course and may vary to some extent from year to year. Knowledge of basic accounting and finance is assumed.

30 hours of seminars in the Autumn Term.

This course has a reading week in Week 6 of Autumn Term.

There will be two 90 minute sessions each week, with a reading week in week 6 of AT. Each session is conducted in groups of about 60 students, often involving case study analyses, application exercises and group presentations and discussions. This mode of teaching requires good advance preparation by the students; hence, every student should be ready to contribute to the discussion when called upon. Active participation is expected and encouraged.

Formative assessment will be in the form of class exercises and case-studies on topics covered during the course. Students will be expected to hand in a single group assignment in the AT.

The course relies mostly on HBR readings, lecture notes, journal articles, and chapters from relevant books supplied in online study packs.

Exam (70%), duration: 120 Minutes in the Spring exam period

Case analysis / study (30%)

The group work will comprise two assignments, the last one including a presentation.