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Archival-Based Research Methods in Accounting

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					                                    ACC 6973
                                    May 2009
                  Archival-Based Research Methods in Accounting
Venue

BB.302.18 from 8:00 to 10:50 May 11th – May 30th (M-F)

Learning Objective/Purpose of the Course

Examination of quasi-experimental research designs and methods as used in archival-
based accounting research. Provides students the opportunity to develop a foundation for
performing research related to PhD seminar project, academic research and scholarly
papers. Includes partial or complete replications of published archival-based research
papers


Required Texts

Delwiche, L. and S. Slaughter. 2003. The Little SAS Book. (3rd Ed.)

Cody, R. 2005. The SAS Workbook


Recommended Resources

SAS Language and Procedures

SAS 9.1.3 Language Reference: Concepts

SAS 9.1.3 Language Reference: Dictionary

Base SAS 9.1.3 Procedures Guide

SAS/IML


Grading

Class participation (possibly including an exam) – 25%
Term paper & paper presentation – 75%

Term Project

You will choose a paper positioned within a literature stream of interest to you. You will
prepare a two-part term project. The first part of the project is a comprehensive review of
your chosen literature stream, culminating in a discussion of currently unanswered
questions that might be addressed by future research (one of these questions potentially
could form the basis of your second year summer paper). Ten page maximum. Your
discussion should primarily focus on the "stories" within this literature stream (i.e., the
theories and related conceptual constructs that underpin the literature).

The second part of your project will constitute a complete replication of one of the
papers within your chosen literature stream. You will present the replication results to
class participants (and interested faculty) as though the study were your own. In lieu of
the replication, you may choose to undertake independent research if you prefer. The
latter route will be much more challenging but will place you on the path toward
developing a piece of independent research that can evolve into your dissertation or
comprise a stand-alone paper that potentially could be published before graduation.


                            Deliverables – Replication Route

                      Deliverable *                                     Due date

Draft of your literature review paper and complete           Monday, 6/1
citation of three papers that you would like to replicate
(I will approve one).

SAS output of data descriptive statistics.                   Friday, 6/19

SAS output of your analysis.                                 Monday, 7/6

Powerpoint file containing draft copies of your slides       Monday, 7/27.
and tables.

Present replication results to class and interested faculty Early August
.
* - all deliverables to be submitted via email. SAS output to be provided in pdf
format.




                      Deliverables – Independent Research Route

                      Deliverable *                                     Due date

One page summary of proposed term paper topic.               Friday 5/15 (end of first
                                                             week).

Two to three page introduction to term paper (Section 1)     Due Friday 5/22.
that succinctly describes the purpose and the
                      Deliverables – Independent Research Route

                      Deliverable *                                   Due date

contribution of your study. Your Section 1 should be
similar in structure and content to the introduction of
papers published in The Accounting Review.

Two to five page discussion of your theory/hypotheses       Due Friday 5/29.
or story/research questions (Section 2). Your Section 2
should be similar in structure and content to the theory
and hypothesis section of papers published in The
Accounting Review.
Two to five page discussion of your research design         Due Friday 6/5.
(Section 3). Your Section 3 should be similar in
structure and content to the corresponding section of
papers published in The Accounting Review.

Table 1 of your paper entitled “Table 1 – Definition of
Variables.”

One page discussion of your sample selection criteria       Due date will be decided in
and discussion of the descriptive statistics of your data   consultation with me
(Section 4). Your Section 4 should be similar in            depending upon whether you
structure and content to the corresponding section of       must hand-collect data.
papers published in The Accounting Review

Table 2 of your paper entitled “Table 2 – Sample
Selection.”

Table 3 of your paper entitled “Table 3 –Descriptive        Due two weeks after Section 4
Statistics.”                                                is due.

Table 4 of your paper entitled “Table 4 – Regression
Analysis of xxx.” where xxx is an appropriately
descriptive title of your choosing.

Table 5 of your paper entitled “Table 5 – Sensitivity       Due one week after Table 4 is
Analysis.”                                                  due.

Three to five page discussion of the results of your        Due one week after Table 5 is
analysis (Section 5). Section 5 should be similar to the    due.
corresponding section of papers published in The
Accounting Review.

One page statement of your conclusions (Section 6).         Due one week after Section 5
                    Deliverables – Independent Research Route

                    Deliverable *                                 Due date

                                                        is due.


* - all deliverables to be submitted via email. SAS output to be provided in pdf
format.
                                                         Class Activities

Topic                                       Activity
1. Develop basic SAS skills                 Before class: You will complete the assignments in the Cody workbook on your own
                                            before May 12th.

                                            In class: We will discuss assignments that gave you particular difficulty.

                                            Please send me an email by 8:00 PM Sunday May 10th identifying the problems
                                            you’d like to cover in class Monday May 11th.

2. Develop a basic understanding of the     Before class: Peruse the WRDS website. Focus in particular on Compustat, CRSP,
data resources available to you via WRDS.   IBES, and Audit Analytics.

                                            In class: We'll discuss these databases in class.


3. Working with Compustat-- Abnormal        Before class: Read Jones, K., G. Krishnan, and K. Melendrez. 2008. Do models of
accrual models.                             discretionary accruals detect actual cases of fraudulent and restated earnings?
                                            Contemporary Accounting Research. 25(2): 499-531.

                                            In class: I will ask you to explain how abnormal accrual models “work,” the variation
                                            in specifications used, the power of the models, and the factors that threaten the
                                            validity of the models.

                                            In class: We will estimate models 1-8 in Jones et al. for the period 1998-2001 and
                                            compare your results to those reported in Jones et al. Table 4.
Topic                                 Activity

4. Working with Audit Analytics and   Before class: Read Payne, J. 2008. The influence of audit firm specialization on
IBES                                  analysts' forecast errors. Auditing: A Journal of Theory & Practice. 27(2): 109-136.

                                      In class: We will discuss the paper.

                                      In class: We will replicate portions of the paper.

5. Working with Execucomp & CRSP      Before class: Read Banker, R, H. Huang, and R. Natarajan. 2009. Incentive contracting
                                      and value relevance of earnings and cash flows. Journal of Accounting Research.
                                      47(3): 647-678.

                                      In class: We will discuss the paper.

                                      In class: We will replicate portions of the paper.

				
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