I am teaching a new course on financial analytics.

Financial analytics is concerned with (a) analyzing financial data from the stock markets (“big data”) and from financial statements (income statements and balance sheets) and (b) using the insights from this analysis to make financial decisions. This course takes the perspective of a significant user of financial data and focuses on the application of financial analytics in asset management and investments. The students will also learn to apply this knowledge to stock screening and valuation.

Typical examples of such use include the following:

– How is the earnings process of a firm reflected in its financial statements? How can investors, mutual funds, and hedge funds assess whether the firm’s performance is sustainable?
– Can investors use financial statements to predict restatements/financial distress?
– Can investors use the past price patterns to predict future returns?
– Can investors use the information in warranty disclosures in their decision to buy or sell stocks?
– What is value investing? Does it “work” and if yes, why does it work?