Carnegie Mellon University

Accounting & Information Economics I

Course Number: 47718

short course introduces a basic information-economic theme in accounting theory. That is, viewed as a source of information, accounting assumes the economic role of facilitating and influencing decision-making under uncertainty. We start with two essential information-based economic problems moral hazard and adverse selection respectively. After a broad introduction, we explore accounting problems, which have their roots in these two basic problems. Examples are (1) incentive cost in corporate finance, (2) monitoring in teams; (3) corporate disclosure in financial market.

Degree: PhD
Concentration: Accounting
Academic Year: 2019-2020
Semester(s): Mini 1
Required/Elective: Elective
Units: 6

Format

Lecture: 100min/wk and Recitation: 50min/wk

Textbook(s):

A draft of the textbook written by the instructor will be used; additional materials include consulting texts and journal articles; and an optimization software (excel or matlab) will be used some weeks.

Learning Objectives

The students will be able to have in-depth understanding of current accounting research and, to some extent, corporate finance research that built on information economics. Students will be able to begin seek relevant research questions using information economics tools.