Professor Jeong-Bon Kim, Director of the Accounting Department of City University of Hong Kong，invited by Xiamen University Vice-Chancellor, Jianfa Li, arrived our school for a week academic visit as a visiting professor of Xiamen University on behalf of “Saturday” from 24th Oct to 28th Oct, 2011.
During the visit, Prof. Jeong-Bon Kim exchanged multi-level academic views with accounting teachers and students in our school, including opening an academic research on the financial frontier research programs for doctoral students. Meanwhile, in order to understand and grasp the leading edge of the financial and accounting areas better, we held two small academic reports in Accounting Department and Institute for Financial & Accounting Studies
The lectures of Professor Kim can be divided into three academic reports. First, he opened a small course for finance and accounting doctoral students in our school. At the beginning of teaching, he redefined accounting as a process of aggregating a firm’s value creating activities into observable summary value measures. Therefore, accounting is a science of value and value aggregation. Based on a series of theoretical models of Edwards-Bell-Ohlson, Professor Jeong-Bon expounded how the accounting information and income affect the value of the company theoretically.
Professor Kim suggested that we can study the impact of accounting information on the value of the company in three dimensions. The First Moment Approach is a relatively mature research topic that it focuses on why the different relationships between accounting profit and firm value will have different performance in different companies; The Second Moment Approach is the analysis of Stock Price Synchronicity, also known as Stock Price Informativeness, which is a hot spot in recent years and Professor Kim himself also published a paper about China in this area in Journal of Financial Economics, 2010; The Third Moment Approach is a new area that studying the impacts of accounting information on the possibility of Stock Price Crashes ,which is a new field about this and it is still immature. Professor Kim believed that this area is the new trend of accounting academics in future research.
Also, Professor Kim reported in both Department of Accounting and Institute for Financial & Accounting Studies. He reported his latest research in Institute for Financial & Accounting Studies, which analyzes the impact of international financial reporting standards and institutional environment to stock price synchronicity. The report in Department of Accounting was how to do Chinese problem of academic research of high quality and he also exchanged his experience and knowledge in publishing Chinese research papers in top international academic journals.
