MAN-MEC034
Accounting and Governance
Course infoSchedule
Course moduleMAN-MEC034
Credits (ECTS)6
CategoryMA (Master)
Language of instructionEnglish
Offered byRadboud University; Nijmegen School of Management; Master Economics;
Lecturer(s)
PreviousNext 2
Lecturer
dr. G.J.M. Braam
Other course modules lecturer
Lecturer
dr. F. Habermann
Other course modules lecturer
Lecturer
dr. E.K. Matthaei
Other course modules lecturer
Contactperson for the course
dr. D. Reimsbach
Other course modules lecturer
Examiner
dr. D. Reimsbach
Other course modules lecturer
Academic year2022
Period
2  (07/11/2022 to 29/01/2023)
Starting block
2
Course mode
full-time
Remarks-
Registration using OSIRISYes
Course open to students from other facultiesNo
Pre-registrationNo
Waiting listNo
Placement procedure-
Aims
The course Accounting and Governance (AG) aims to contribute to the understanding of the governance role of accounting. AG focusses on the interplay of corporate accounting and governance practices by studying the relationships between financial and non-financial accounting information, corporate governance mechanisms, and human behaviour. At the end of this course, students will be able to:
  • Argue in line with the Accounting+ idea, and the overall Economics+ orientation of the program, and thus…
  • Define the key concepts “Accounting” and “Corporate Governance” and explain how they are interrelated in real-world economic problems;
  • Understand and actively present academic literature in the field of accounting and governance and explain its relevance to overcoming real-world economic problems;
  • Analyze the role of financial and non-financial accounting information in economic decision-making from different (economic and non-economic) theoretical perspectives;
  • Discuss how corporate governance mechanisms, including the use of accounting information, may help to reduce adverse selection and moral hazard problems in settings in which there is a separation of ownership and control;
  • Create and defend (in writing) potential solutions to specific real-world problems in the realm of accounting and governance from the perspective of an accounting scholar and practitioner.
Content
The course Accounting and Governance (AG) aims to contribute to the understanding of the governance role of accounting by studying the relationships between financial and non-financial accounting information, corporate governance mechanisms, human behaviour and economic performance. From an agency perspective the separation of corporate ownership and control, and the fact that other stakeholder groups become more and more important, involves inherent conflicts between capital providers, other stakeholders and managers, i.e. adverse selection and moral hazard problems. Corporate governance mechanisms aim to influence the decisions made by managers when there is a separation of ownership and control. Corporate governance mechanisms include internal mechanisms such as internal control systems and managerial incentive plans, and external mechanisms, like outside shareholder and debt holder monitoring, and oversight activities undertaken by the board of directors and public oversight boards. Accounting information should help to discipline managers to act in the interests of investors and other stakeholders, thus positively affecting the effective governance of the organization, the allocation of economic resources and the value of the corporation. The course Accounting and Governance provides the theoretical and empirical foundations for assessing how the use of financial and non-financial accounting information in corporate governance and control mechanisms may help to reduce adverse selection problems, i.e., reduce information asymmetries among capital providers and other stakeholders on the one hand, and corporate top management on the other hand. In addition, the course discusses how corporate governance and control mechanisms and the use of financial accounting information in these mechanisms may help to reduce moral hazard problems, i.e., help to discipline managers to direct resources to projects identified as “good” and away from projects identified as “bad”. Finally, the course discusses the effects of different types of corporate financial and non-financial reporting and disclosure on economic performance.
Level
Advanced level
Presumed foreknowledge
A Bachelor's degree in Economics with a specialization in Accounting and Control (or Accounting and Finance), or a Bachelor's degree in Business Administration with a Minor in Accounting and Control (or a Minor in Accounting and Finance) including Financial Accounting and Reporting.
More specifically: 
Prerequisites: Students are expected to have passed an intermediate course in Financial Accounting and Reporting at the level of Kieso, Weygandt & Warfield (2020), Intermediate Accounting: IFRS Edition, Wiley, 3rd edition, or Revsine, Collins & Johnson, Mittelstaedt (2021), Financial Reporting & Analysis, McGraw-Hill, 8th edition. Kieso, Weygandt & Warfield (2020) is used in the bachelor's course Financial Accounting and Reporting (BCU2018) and assumed as prior knowledge.

 
Test information
Written exam, assignments, presentation, chairmanship of discussion. Partial results from previous year stay valid.
Specifics
The course aims to advance students' knowledge in the fields of financial accounting and corporate governance; - enhanced academic skills (critical attitude; research methods, presentations, discussion and debate, and review) by doing group-based research in accounting and governance, presentations, and participation in discussions. - a good understanding of the role of economic theories in the development of the knowledge base in financial accounting and corporate governance. - enhanced skills in writing a scientific paper in the field of accounting in order to prepare them for the Master's thesis;
Level
Ma 1

Required materials
Book
Scott, W.R. & P. O'Brien (2020), Financial Accounting Theory, Pearson/Prentice Hall, Toronto, 8th edition OR Scott, W.R. (2015), Financial Accounting Theory, Pearson/Prentice Hall, Toronto, 7th edition.
ISBN:9780134166681
Title:Financial Accounting Theory,
Author:Scott, W.R. & P. O'Brien
Publisher:Pearson/Prentice Hall
Edition:8
Articles
Research papers (to be announced on Brightspace)

Instructional modes
Assignments
Attendance MandatoryYes

Remark
During the course, student groups are required to prepare 2 assignments

Lecture

Presentations & Discussions

General
To discuss the topics in depth, student groups are expected to present an academic paper that is assigned to them. After the presentation, the paper will be discussed in an interactive way chaired by another student group. All students are expected to read the paper before coming to the lecture and to participate in the discussion.

Remark
Presentations and discussions

Tests
Exam
Test weight1
Test typeDigital exam with CIRRUS
OpportunitiesBlock 2, Block 3