Syllabus overview (public)

× Note! You need to be authenticated to see more details about syllabi. If you have an ESCP Europe account please login.       Login
Programme Master in Management
Academic Year Academic Year 2023/2024
Module/course Code RX20
Delivery location Paris
Language English
Course type Elective courses 30h
Contact hours 30
Level 5 (year post baccalaureate)
Semester Spring
Field (Discipline) Financial reporting and audit
Academic Department Financial Reporting and Audit


Module/course Summary

Accounting for investment banking focuses on topics relevant for participants who want to work in the area of investment banking, corporate finance, or private wealth. The course is structured as a primer on accounting-based valuation and analysis based on quantitative screens. The basic premise is that stock prices are established through an arbitrage process that involves proper use of accounting information. The course focuses on analysing companies to identify potential frictions in using accounting information to estimate firm value and to exploit these information frictions for active stock investing in public markets.

Students will use various analytical tools to analyze individual companies and to design and back-test stock screens based on accounting variables. They will also read a number of academic research papers and attempt to incorporate the insights from the studies into accounting-based investment strategies. These strategies include such topics as accounting anomalies in returns, accounting arbitrage, limits to arbitrage, factor investing, fundamental analysis, research on accounting quality, and developing the appropriate accounting information on which to trade.