BSc Management (Human Resources) with Industrial/Professional Experience

Year of entry: 2020

Course unit details:
Share Prices and Accounting Information

Unit code BMAN30071
Credit rating 10
Unit level Level 3
Teaching period(s) Semester 1
Offered by Alliance Manchester Business School
Available as a free choice unit? No


Accounting numbers are regarded as being useful in evaluating investments. The module reviews various models that have been proposed for calculating a firm’s intrinsic equity value. These equity valuation models link share prices or returns to items from the income statement and the balance sheet and include the Simple Earnings Capitalisation Model, option-style valuation models, and Abnormal Earnings Valuation Models. Moreover, the module introduces the notion of earnings conservatism and argues that earnings conservatism is closely linked to share price anticipation of earnings. The module also discusses why informational asymmetries between managers and outsiders can have an impact on the performance of theoretical models. The final two lectures examine the value-relevance of information provided by firms outside the financial statements: One lecture looks at interim management statements and examines whether mandatory interim management statements are needed for information efficient prices. The other lecture looks at the tone in narratives and examines how equity investors value (abnormal) positive tone.



Unit title Unit code Requirement type Description
Foundations of Finance A BMAN23000 Pre-Requisite Compulsory
Foundations of Finance B BMAN23000B Pre-Requisite Compulsory
BMAN23000(A) or (B) is a pre-requisite of BMAN30071.

Pre-requisite course units have to be passed by 40% or above at the first attempt unless a higher percentage is indicated within this course outline. If the pre-requisite unit is defined as a compulsory course unit within your programme of study (Maths with Finance, IBFE, Accounting, BA Econ pathways for example) then progression onto the dependent unit is permitted as long as you have gained the appropriate amount of credit to progress on to the following year of your registered undergraduate programme.

Pre-requisites: BMAN23000(A) or (B) Foundations of Finance

Co-requisites: None

Dependent course units: None


The course aims to increase students' knowledge of accounting-based valuation models. Students will learn how these models are constructed and how the validity of these models can be tested both by logical criticism and by empirical evidence.

Learning outcomes

On completion of this course unit, successful students will:
- have a knowledge and understanding of major accounting-based valuation models, including a familiarity with the seminal research papers in the area, and an understanding of the limits of such knowledge;
- have the ability to critically evaluate theories and evidence related to accounting-based valuation models;
- have a knowledge and understanding of the methodology that is employed in order to test these models empirically;
- be able to access relevant journal articles in major US/UK accounting journals and draw on them in critical consideration of arguments;
- be able to use communication and information technology (e.g. spreadsheets and word-processing) in acquiring, analysing and communicating information.

Teaching and learning methods

16 one-hour lectures over 9 weeks (workshops and seminars included in lecture slots).

Total study hours: 100 hours split between lectures, classes, reading, self-study and preparation for classes, coursework and examination.

Informal Contact Methods
1. Office Hours

Assessment methods

2 hour examination (100%)

For semester 1 only exchange students admitted via the Alliance Manchester Business School International Office that take this course as BMAN30851 the assessment will be an 8 page research report.


Feedback methods

Methods of feedback to students include:

- Informal advice and discussion during a lecture, seminar and workshops;

- Responses to student emails and questions from a member of staff;

- Generic feedback posted on Blackboard regarding overall examination performance.

Recommended reading

The course is based - to a large extent - on journal articles. The main journals of interest in this course are:

Journal of Accounting Research (JAR), Accounting Review (AR), Journal of Accounting and Economics (JAE), Review of Accounting Studies (RAS), and - to lesser extent - Journal of Business Finance and Accounting (JBFA) and Accounting and Business Research (ABR).

The first four journals are American journals; the other two journals are from the UK.

Some parts of the course are covered in the following two textbooks:

Barker, R. (2001), Determining Value: Valuation Models and Financial Statements, Harlow: Financial Times Prentice Hall.

Scott, W. R. (2003), Financial Accounting Theory, 3rd Edition, Toronto: Prentice Hall.


Study hours

Scheduled activity hours
Assessment written exam 2
Lectures 16
Independent study hours
Independent study 82

Teaching staff

Staff member Role
Thomas Schleicher Unit coordinator

Additional notes

Length of course: 9 weeks

Programme Restrictions: There are no programme restrictions for this course providing the pre-requisites listed above are met.

BMAN30071 is available to study abroad and exchange students admitted through the University of Manchester International Programmes Office.


For Academic Year 2019/20

Updated: May 2019

Approved by: March UG Committee

Return to course details