Accounting

This class sets the foundations for later applications of analytical methods. This includes linear algebra, calculus, optimization, and probabilistic inference. Frankfurt School also offers a preparatory maths class in the summer, for those aiming to brush up before entering this course.

A graduate-level micro-economics course. It begins with consumer decision making and general equilibrium, followed by game theory. Also covered are bi-forms, i.e. the combination of the two game theoretic solution concepts as applied by incomplete contract theory.

The class provides key knowledge on how different econometric models work and most importantly sheds light on their limitations. The course also provides step by step application of new tools to different data sets in the computer lab. You will be asked to replicate, and in some cases improve, prior empirical studies.

This course covers extensions to standard regression techniques and offers alternatives. Bayesian statistics, prediction and validation, simulation models, and machine-learning techniques are among the key topics.

Course Description

This empirical PhD seminar in the Accounting concentration aims to provide a broad overview over the most important strands of literature, while the in-class discussion will also highlight test design choices. 

Aside from general class participation, students are expected to present select papers during class, the (take-home) deliverables at course conclusion are a research proposal and a referee report.  Students can opt to gain programming experience (SAS/Stata) through a (guided) replication of an existing study. 

The course is normally scheduled to meet weekly throughout the semester. If external students enroll, the format will be changed to three blocks of adjacent classes (4+4+3).

Prerequisites

Accounting, Econometrics (master level)

Course Structure

• Introduction to Empirical Accounting Research: The role of accounting research from informational and contracting perspectives
• Empirical accounting research classics: Accounting numbers and stock prices
• Accounting-based valuation
• Earnings responses and value relevance
• Conservatism: Motivation, measures, and consequences
• Returns and cost of capital
• Investor information processing and stock market anomalies
• Earnings management
• Earnings quality
• Standard Setting 1: Disclosure versus recognition
• Standard Setting 2: Comparative accounting research, IFRS adoption

Course Description

This course is designed for PhD students in accounting and may also be of interest to PhD students with research interests in related fields, particularly corporate finance and management. The main goal is to enhance students’ understanding of empirical economics-based research in accounting. A secondary goal is to broaden the students’ view of what constitutes accounting research by showing how it is embedded in work in other disciplines such as economics, finance, and biology.

This course surveys leading academic research in economics, finance, and accounting and highlights in particular emerging topics and new research methods. Throughout the course, I intend to emphasize research design issues, identification strategies, and new (uses of) data. Students are allowed to take each module separately for credit, but are encouraged to attend the complete course.

Course Structure

Part I: Organizational design, performance measurement, and incentives

• Complementarities in organizational design and empirical consequences
• Delegation of authority
• Incentives and reward systems
• Performance measurement

Part II: Disclosure and contracting

• (Implicit) contracting theory, supply and loan contracts
• Conservatism and the confirmatory role of accounting information
• (Voluntary) disclosure choices and computational linguistics

Part III: Political economy of accounting and finance

• Corporate political activity and firm policies
• Media and other information intermediaries
• Enforcement and regulation in (international) capital markets

Part IV: Managerial characteristics, (firm) culture, and firm outcomes

• Do managers matter?
• Cultural heritage vs. innate characteristics of managers
• Plough vs. hoe or Rice vs. wheat: the origin of time preferences and why it is important

Course Description

• Fixed effects regression
• Difference-in-differences estimators
• Regression discontinuity design
• Synthetic control estimator
• Instrumental variable regressions
• Governance of the research process

Prerequisites

Econometrics I and II

Course Structure

The course is structured in three parts (not necessarily chronological):

• Part 1: Empirical methodologies (focus on regression discontinuity, difference-in-difference estimators, synthetic control estimators)
• Part 2: Discussion of recent empirical papers with a focus on financial intermediation, corporate finance, and possibly with a link to accounting
• Part 3: Development of own research ideas

Course Description

This module provides an introduction to academic empirical research on performance measurement and incentives. It covers topics such as financial and nonfinancial performance measures, subjective performance evaluation, target setting and target ratcheting, relative performance evaluation and management control systems.

Prerequisites

Econometrics I

Course Structure

• Intro: Paradigms in Management Accounting Research: Theory & Methods
• Explicit & Implicit Incentive Design Frameworks
• Performance Measures (I), especially Stock Prices & Accounting
• Measures & Nonfinancial Performance Measures
• Performance Measures (II) Organizational Design (Decentralization, Interdependencies), Subjectivity
• Management Accounting at the Top of the Firm: Corporate Governance
• Relative Performance Evaluation
• Target Setting
• Economic and Behavioral Aspects of Budgeting
• Cost Behavior and Management
• Management Control Systems & Informal Controls such as the Balanced Scorecard Framework
• Behavioral Aspects in Management Control

Course Description

The course aims to familiarize students with the basic concepts of game theory.

Students learn different classes of games and a variety of solution concepts to predict strategic behavior in these games.

They will learn how to capture practically relevant situations in a game and the necessary tools to solve these games.

Prerequisites

Students should have completed a PhD class in Microeconomics.

Course Structure

The course combines theoretical developments of game theoretic concepts with applications of these concepts to questions in economics, finance, and management. The course starts with simple games and shows the solution concepts for these games. It then gradually enriches the games and the respective solution concepts. For each class of games, several examples will be provided how to apply the material learned in the course, always with an eye on how students can apply these concepts in their own research

You will have a budget for three additional courses suitable for your chosen area of specialisation. These can be offered by Frankfurt School but often are found at other research universities. Faculty and the program office help you identify appropriate courses.

• CV and list of publications (if existent)
• Certified copy of your University Entrance Qualification (Abitur, A-levels or equivalent)
• Certified copy of your University Degree Certificate or equivalent and academic transcript of records
• Official GMAT or GRE results
• Proof of English Language Proficiency Test (TOEFL IBT min. score of 100/IELTS min. score of 7.0)
• Two letters of recommendation from a former academic tutor or from another person in an academic environment.
• Statement of purpose and research interest (description of a possible research project, 2-5 pages, demonstrating how the candidate plans to apply his/her particular interests, skills and expertise to the pursuit of his/her academic objectives)