Welcome

This is the on-line version of the work-in-progress edition of Accounting Research: An Introductory Course”.

The book is being written by Ian D. Gow and Tony Ding.

0.1 Materials to come

Exercise templates (TBD)

  • We hope to make available exercise templates for use by students and also suggested solutions for instructors.
  • If you are interested in teaching particular chapters, please contact us (see below for details), as we may have a rough template available.

Capital markets research (September 2022)

  • Write up material on the efficient markets hypothesis
  • Finish up chapter on event studies

Accruals (late September 2022)

  • Build up simulations using (somewhat) realistic models of actual business and accounting processes
  • Coverage of accrual quality models, including Dechow and Dichev (2002)
  • Reorganise and build on material currently found in “Accruals” and “Earnings management” chapters.

Methods (October 2022)

  • Build up materials in “miscellaneous methods” chapter, perhaps making two chapters
  • Likely chapter on selection models and limited dependent variables, perhaps after material on quasi-experimental methods.
  • Find the right home for material on “two-step regressions”.

Structural models (October 2022)

  • Include material on structural models from Gow, Larcker and Reiss (2016)
  • Explicitly discuss weaknesses implicit in Gow, Larcker and Reiss (2016) material
  • Add an application, perhaps the one from Bertomeu, Beyer, and Taylor (“BBT”).
  • Examine a modification of BBT’s model.

Prediction (November 2022)

  • Setting of accounting restatements/AAERs
  • Perhaps consideration of machine-learning approaches
  • Material on linking with CIKs likely to move here
  • Possibly including a replication of Bao et al. (2020).

0.2 Recent changes

  • July 2022
    • Added more material to SQL primer (appendix)
  • June 2022
    • Organized book into parts. See Section 1.4 for more on how the book is structured.
    • Initial draft of second chapter on natural experiments
    • Added material on evaluating natural experiments and the parallel trends assumption to Chapter 20.
  • April 2022
    • Filled out chapter on accrual anomaly (Sloan, 1996)
    • Added chapter on earnings management mostly focused on DSS (1995)
  • January 2022
    • Added separate chapter on FFJR (1969)
    • Added separate chapter on Ball and Brown (1968)
  • November 2021
    • Added chapter on RDD.
    • Added simulation from Leone et al. (2019).
  • October 2021
    • Added chapter on natural experiments.
  • July 2021
    • Added chapter on panel data.
    • Extensive revisions to material on IV.

We have shared this book with a small number of people in the hope of getting feedback that will make the final book a better product. If you have suggestions or requests, please feel free to contact either Ian or Tony.