Corporate Financial Communication and Valuation

BMAN31610 Corporate Financial Communication and Valuation 40 Full year Undergraduate Level 3 Thomas Schleicher Unit coordinator Wei Jiang Unit coordinator 1 FHEQ level (Framework for Higher Education Qualifications) ' Last part of a Bachelors ' European Credit Transfer & Accumulation System Rating : 20.0 This course unit is explicitly skills-based. It provides an opportunity to apply existing knowledge from other course units in accounting and finance, as well as other subjects you may have studied. It also presents new ideas and material intended specifically to help you develop and enhance your skills of research and analysis.The course unit is research-based, with the work carried out in groups in Semester 1 and individually in Semester 2. It is crucial for students to recognise that the key focal points of this course unit are the researching, preparation and submission of the assessed pieces of work. As the assessment for this course unit is based upon a group project and an individual project, both requiring the integrative application of existing and new knowledge, it is the independent undertaking of these two assessments that is the main driving force on this course unit, and these two assessments are entirely students’ responsibility, whether working with other students in the project group in Semester 1, or individually in Semester 2.  Note that the Semester 1 group valuation project represents a 'classic' accounting valuation project, the underlying theoretical positions and methodological approaches of which are then subject to critique and development via the Semester 2 individual project; which allows students to form their own judgement as to how an accounting valuation and/or investment analysis project should be conducted (and defended and justified) with the more ‘free flowing’ and critical spirit  providing students with the opportunity to intellectually challenge, express and demonstrate their self-development and application capacity.Tutorials in Semester 1 are used at appropriate staging posts or points in the course, providing sounding boards for the development of ideas and appropriate guidance on how to approach and organise the project assignment.  While guidance and feedback are given to assist students, the two assessments remain entirely a responsibility of the student.The course will include lecture presentations by the two lecturers. Online information about the course will be available on Blackboard. This will include the course description, lecture notes, and other support materials.  This course unit is explicitly skills-based. It provides an opportunity to apply existing knowledge from other course units in accounting and finance, as well as other subjects you may have studied. It also presents new ideas and material intended specifically to help you develop and enhance your skills of research and analysis.The course unit is research-based, with the work carried out in groups in Semester 1 and individually in Semester 2. It is crucial for students to recognise that the key focal points of this course unit are the researching, preparation and submission of the assessed pieces of work. As the assessment for this course unit is based upon a group project and an individual project, both requiring the integrative application of existing and new knowledge, it is the independent undertaking of these two assessments that is the main driving force on this course unit, and these two assessments are entirely students’ responsibility, whether working with other students in the project group in Semester 1, or individually in Semester 2.  Note that the Semester 1 group valuation project represents a 'classic' accounting valuation project, the underlying theoretical positions and methodological approaches of which are then subject to critique and development via the Semester 2 individual project; which allows students to form their own judgement as to how an accounting valuation and/or investment analysis project should be conducted (and defended and justified) with the more ‘free flowing’ and critical spirit  providing students with the opportunity to intellectually challenge, express and demonstrate their self-development and application capacity.Tutorials in Semester 1 are used at appropriate staging posts or points in the course, providing sounding boards for the development of ideas and appropriate guidance on how to approach and organise the project assignment.  While guidance and feedback are given to assist students, the two assessments remain entirely a responsibility of the student.The course will include lecture presentations by the two lecturers. Online information about the course will be available on Blackboard. This will include the course description, lecture notes, and other support materials.  The unit aims to increase students’ knowledge and understanding of the theory and practice of corporate communication, financial communication, financial statement analysis, and equity valuation, and to place this understanding within its broad business, accounting, and financial context.  Students will be able to:   understand and explain the concept of classic financial statement analysis including strategy analysis, accounting analysis, financial analysis, forecasting, and valuation; and  understand and explain the theoretical relationships between accounting numbers and stock market values;understand and explain the theoretical foundations of research on financial communication; and understand and explain the usefulness of financial accounting information from evidence in the field;understand and explain the determinants and economic consequences of corporate social responsibility reporting. effectively analyse and interpret business strategy, financial statements, and financial statement ratios; and appreciate the complex nature of financial statements and financial statement ratios and select the most useful ratio calculation for forecasting and valuation;critically evaluate the usefulness of accounting information for investors; and evaluate the formal and informal processes companies use to communicate with investors;analyse determinants and real effects of corporate social responsibility reporting; appreciate the wide-ranging sources of information available in analysing the position, performance, and future prospects of a firm, and effectively select and summarise the most relevant sources of information.   demonstrate an ability to employ communication technology, including Excel spreadsheets in acquiring, analysing & presenting information;demonstrate an ability to work as a member of a team;demonstrate an ability to put into practice skills such as project management, time management, and report writing.  The opportunity in semester 1 to work in groups and produce an investment analyst’s report will provide you with a range of leadership, project management, and presentation skills demanded of many professional jobs in a wide variety of public and private sector organisations. Undertaking your own in-depth individual project in semester 2 further strengthens your capacity for: independent research; critical thinking; imaginative but organised writing; and managing complex tasks. It is a special and distinctive part of your degree at Manchester. SEM1 SYLLLABUS  Business Strategy AnalysisAccounting AnalysisFinancial AnalysisForecastingValuation  SEM2 SYLLLABUS  The Usefulness of Financial Accounting Information (I)The Usefulness of Financial Accounting Information (II)Accounting Information and Sophisticated versus Unsophisticated InvestorsInstitutional Investors’ Information ChannelsReflections on Analysts and CSRIndividual Assignment Guidance(I, II, and III)Feedback on Draft Essay Submitted  Lectures: Several lectures introduce new material though most ‘lectures’ in the second half of SEM1 will have a ‘tutorial like feel’ to them so please prepare and attend. SEM2 lectures combine conventional 'new material teaching,' tutorial discussions, individual assignment guidance, and feedback. Therefore, attending and participating in these lectures is crucial for all students.Tutorials: Four tutorials will be offered in Semester 1. Three of the four Semester 1 tutorials will allow students to present findings on individual parts of their group valuation project, with subsequent verbal feedback provided by the lecturer. The fourth Semester 1 tutorial will be a full project presentation, again followed by verbal feedback from the lecturer. You are expected to do the required teamwork before each tutorial. No tutorials will take place in Semester 2 as SEM2 lectures integrate all teaching activities.Total: SEM1: 18 x lectures (1 x hour per lecture) and 4 x tutorials (1 x hour per tutorial); SEM2: 9 x lectures (2 x hours per lecture) Informal Contact Methods1. Office Hours 0 Other 100% Formative:Group PresentationsSummative:Group Project (33%)Individual Report (67%) Feedback to Students Verbal feedback on group project presentations will be provided during the four tutorials in Semester 1. In addition, students will get written feedback on their  assessed group valuation report early in the New Year. Generic feedback on individual project will be provided in lectures in Semester 2. Students will be able to attend office hours to discuss their questions and progress with course unit directors. Feedback for all formative assessment is returned within 15 working days of the submission deadline. A working day is defined as Monday to Friday, not including bank holidays and excluding student vacation periods and University examination periods.Feedback from Students Students will be requested to complete a course unit evaluation form towards the end of both semester 1 and semester 2, which will be used for the purposes of course unit review and development. Students are also welcome to provide informal feedback to the lecturers at any time and the final session of the course unit will also include an opportunity for feedback and comments.   Compulsory for and available only to students on the BSc Accounting programme.Pre-requisites: Completion of the second year of the BSc Accounting program.   N The main textbook recommended for Semester 1:   K Palepu, PM Healy, & E Peek, Business Analysis and Valuation, IFRS Standards Edition, Cengage Learning – third (2013) or fourth (2016) or fifth (2019) or sixth (2022) edition. For lectures on the individual project in Semester 2:  Cascino, S., Clatworthy, M., Osma, BG., Gassen, J. & Imam, S. (2020). The Usefulness of Financial Accounting Information: Evidence from the Field. Available at SSRN: http://dx.doi.org/10.2139/ssrn.3008083.Cascino, S., Clatworthy, M., Osma, BG., Gassen, J., Imam, S. & Jeanjean, T. (2014). Who Uses Financial Reports and for What Purpose?: Evidence from Capital Providers.  Accounting in Europe, vol 11., pp. 185-209.Beyer, A., Cohen, DA., Lys, TZ. & Walther, BR. (2010). The Financial Reporting Environment: Review of the Recent Literature, Journal of Accounting and Economics, Vol. 50, pp. 296-343.Christensen, H, Luzi, BH & Christian L (2019). Adoption of CSR and Sustainability Reporting Standards: Economic Analysis and Review. Available at SSRN: http://dx.doi.org/10.2139/ssrn.3427748Other references will be provided via the lecture presentations and should be followed up.  Lectures 36 Tutorials 12 0 352 Staff involved: Dr Thomas Schleicher & Dr Wei Jiang. Pre-requisites: Completion of the second year of the BSc Accounting Program. Co-requisites: None. Dependent courses: None. Programme Restrictions: Available only to BSc Accounting students.For Academic Year 2025/26Updated: March 2025Approved by: March UG Committee