Integrating research and curriculum design: An event study in introductory accounting

Extract: In this chapter we present an Event Study assessment project that meets all three educational objectives. The Event Study Project requires students to find an accounting announcement and to evaluate the impact of that announcement on the share value of the company. The project demonstrates the relevance of accounting information to the share market, emphasising the importance of accounting to capital markets. The Event Study is also designed to demonstrate to students the importance of understanding causality. Specifically, the project provides students with an opportunity to explore and understand the impact of factors such as the market and industry, the need to control for size effects, and the need to appreciate that there are random factors that influence changes in the market. Finally the project develops immediately transferable skills in accessing databases, collecting and analysing data on companies, and report writing and presentation skills.