AEM 3355 - Applied Accounting: Finding Value Beyond Fundamentals

Spring. 3 credits. Letter grades only (no audit).

Prerequisite: AEM 2210 or AEM 2225 or equivalent. Permission of instructor required.

J. Sinclair.

Applied Accounting examines the information content embedded in several SEC disclosure documents (i.e., 10-k, 10-q, 8-k, 13f, 4, DEF 14A) and various other exogenous information sources. Using the SEC’s mandated Form 13F disclosures, we will develop skills to uncover investor type and skill; critically evaluate existing trading strategies employed by global investment managers; and advance new investment strategies exploiting publicly available information. The course is designed to enrich students’ understanding of current uses of accounting information. Students will develop their ability to identify, interpret, and use exogenous information to back-test and develop their own information-based investment strategies. This course is designed for students with a strong interest in equity research and valuation, financial analysis, asset management, financial consulting, private equity, or investment banking.

Outcome 1: Students will be able to achieve advanced proficiency in using financial statements and footnote disclosures to understand and evaluate corporate performance with respect to market expectations.

Outcome 2: Students will be able to develop an understanding of how capital markets price various earnings and other financial information components.

Outcome 3: Students will be able to systematically identify stock price reactions to financial accounting information and other exogenously-generated information content (i.e., Twitter posts; government regulation; sports results; etc.).

Outcome 4: Students will be able to develop and apply key skills to formulate, critically evaluate, and communicate effective accounting-based trading strategies.

Outcome 5: Students will be able to acquire professional-level investment research skills.