Financial statement analysis
Dr Stewart Jones
6 points * 39 hours per semester * First, second, summer semester * Caulfield, Sydney, Singapore, Hong Kong (not offered in all locations in all semesters)
Objectives This subject seeks to describe and explain the properties of financial statement numbers, the key aspects of decisions that use financial statement information, and the features of the environment in which these decisions are made. On completion of this subject students should have acquired an in depth understanding of demand and supply forces which underlie corporate financial disclosure; analytical techniques including the interpretation of common-sized financial statements and financial ratio analysis; empirical research into financial statement analysis; this entails, inter alia, evaluating research into: the impact of accounting method choice on accounting numbers; the distributional properties of financial ratios; correlation evidence between financial statement numbers; the cross-sectional evidence of financial statement information; and the impact of times series properties of financial statement numbers.
Synopsis This course will consist largely of seminars at which specific topics will be discussed. Careful pre-reading and active participation by all students is therefore essential; each student will be required to make presentations and generate class discussion; the format of the seminar will consist of a 1.5 hour lecture and 2 hours for student presentations and tutorial assignments; tutorial work will consist mainly of case study analysis.
Assessment Oral and written presentations: 30% * assignment: 20% * Final examination (3 hours): 50%
Prescribed texts
Foster G Financial statement analysis Prentice-Hall, 1986
Zikmund W G Business research methods The Dryden, 1991