Students will interpret information from companies' public financial disclosures to assess the likelihood of different events or outcomes.
Companies featured in past years include Tyco, AIG, CIT, Fannie Mae, Tesla, Pharmasset and Gilead and Commerzbank.
The mission of the Stanford Graduate School of Business is to create ideas that deepen and advance the understanding of management, and with these ideas, develop innovative, principled, and insightful leaders who change the world. The general management curriculum rests on a foundation of social science principles and management functions, tailored to each student’s background and aspirations. This is a hands-on course with an emphasis on experiential learning. The project will feature financial statement and valuation analysis to assess the risks and rewards of the proposed strategy. The course will be of value to those students who anticipate making investment decisions using financial statement information. At the same time, increasing attention is being paid to regulatory and market design issues that could either impede or enhance market pricing efficiency.n n In this course, we will cover recent research on the role of informational arbitrage in asset pricing.
A.) degree program prepares change agents to make a meaningful impact in the world through leadership of business, government, and social-sector organizations. nnn The overall goal of this course is to improve student skills in assessing the relative attractiveness of individual companies, as well as in managing portfolio risk according to pre-specified targets. As part of this course, students will be required to design stock screens, conduct back-tests, do detailed company analyses, execute (virtual) trades, and manage portfolio risk. Students will work in groups to develop a recommendation for an event-driven investment strategy. The course seeks to provide an introduction to the role of accounting information in (i) measuring firm performance, (ii) projecting profitability and firm value for external constituents, (iii) and motivating and controlling the firm's management. The range of applications includes: the structure of managerial performance measures, capital budgeting, intra-company pricing, discretionary bonus pools, the role of non-financial performance indicators and earnings management. While earlier studies tend to view the matter as a yes/no debate, many recent studies now acknowledge the impossibility of fully efficient markets, and have focused instead on analyses of factors that could materially affect the timely incorporation of information into prices.
To assess the probability of corporate events, investors must make judgments about the quality of a company's earnings and assets and understand how accounting policies may influence management's representations.