Overall 52 people attended the four days (the maximum is 32 people per day), this time mostly from academia but also from the industry (e.g. Hunter Industrial Medicine, SBScibus) and the government (e.g. Reserve Bank of Australia, NT Department of Health).

Attendees mostly came from Australia and New Zealand, but there were also four PhD students from Sussex University (UK) and one from Texas A&M University (USA). As usual, about 30% of places were reserved for PhD students at a significant discount.

I would also like to take this opportunity to explain that the income generated from the workshop is partly used to fund MEAFA's research activities, but mostly is retained in older to build sufficient reserves for funding PhD scholarships. We expect to start funding the PhD scholarships within 2011.

Days 1 and 2 will be presented by Demetris Christodoulou, MEAFA General Convener.
Days 3 and 4 will be presented by Bill Rising, Director of Educational Services, StataCorp LP.

The course will be interactive, use real data, and offer ample opportunity for specific research questions and for working exercises to enforce what is learned.
Detailed notes will be provided outlining all theory and applications.

Numbers are limited and places are reserved on a first-come first-served basis.
For more information on content, fees, location, and to reserve a place using the online Reservation Form go to: http://sydney.edu.au/business/research/meafa/activities/stata2011/

Please forward this link to those who may be interested.

The 2011 meeting will feature extended presentations from international keynote speakers and MEAFA members. To maximise feedback, each presentation includes a detailed discussant's report followed by a general discussion amongst participants.

This year's presenters include:

To see the full program, the list of presenters and discussants and to reserve a place go to:
http://sydney.edu.au/business/research/meafa/activities/meeting/2011

The workshop also enjoyed the standard high quality contribution from key MEAFA members:
Richard Gerlach, Vasilis Sarafidis, Andrey Vasnev, and Demetris Christodoulou. Click here for the original announcement.

Overall, the five days were attended by 75 participants from academia, industry (e.g. The Allen Consulting Group, Access Economics, Balllarat Health Services, SBScibus) and government (e.g. Australian Institute of Family Studies, National Prescribing Service, Office of Fair and Safe Work QLD, the George Institute, NSW Department of Community Services, Cancer Council Victoria). As usual, 25-35% of the places were allocated to PhD students at a significant discount.

It is also worth noting that this workshop was audited by StataCorp's vice-president, Alan Riley.

Day 1 (Monday, June 21):
- Introduction to Stata 11 and data management by Demetris Christodoulou, MEAFA General Convener

Day 2 (Tuesday, June 22): Two parallel sessions - you can choose only one to attend
- Proficient Programming with Stata 11 by Demetris Christodoulou
- Econometric Modelling and Statistical Testing by Andrey Vasnev

Day 3 (Wednesday, June 23): Two parallel sessions - you can choose only one to attend
- Panel Data Analysis by Vasilis Sarafidis
- Time Series Analysis by Richard Gerlach

Days 4-5 (Thursday-Friday, June 24-25):
- Multiple Imputation Using Stata by Yulia Marchenko, Senior Statistician at StataCorp LP

You may attend any one or any combination of days. See the description of each day to determine which days are of most interest to you. Fees vary on the days attended. More information available at Workshop webpage.

The workshop was fully subsidised for MEAFA members and graduate and higher research degree students from the University of Sydney, whereas academic members were asked to cover the daily operating cost for their participation. Participants included also practitioners from the private sector.

Over the 3-day workshop a wide range of concepts and applications of neural networks was covered. From almost 20 years researching in this area, Dr Zimmermann made evident all his experience during the workshop.

During the first session, Dr Zimmermann reviewed the basic concepts and literature and then proceeded to to more complex systems of identification, forecasting and control models. Dr Zimmermann defended the role of neural networks as an important method that uses standard econometric tasks to achieve optimal decision making. The question of whether neural networks provides new methodological insights and better understanding of the optimal decision making process, as well as the limitations of the methodology were expanded during the course. Dr Zimmermann offered a more academic dimension in conjunction with practical examples, where he had personally applied neural networks to solve real world problems while working at Siemens.

The workshop focused in understanding the appropriate neural network architectures and corresponding learning algorithms, which are beyond pure data-driven modelling, and where many types of applications such as long term forecasting, or the control of dynamical systems can be tackled. Even in the finance world, where markets are highly interrelated and the analysis of an open dynamical system is not sufficient, Dr Zimmermann demonstrated that the neural network framework should be considered a new approach to risk analysis.

We thank all attendants for their support and active participation in the discussions.

The workshop was convened by Demetris Christodoulou who is the MEAFA General Convenor and Roberto Gutierrez (aka Bobby) who is the Director of Statistics at StataCorp.

On the first day of the workshop Demetris provided a crash course on Stata 11, covering reproducible and tractable routines, ways to customise the software, basic data management techniques, basic statistical and estimation commands and how to produce tables and graphs. The targeted audience were those who were not familiar with Stata or wanted become more efficient in using Stata 11 for their work.

Bobby carried out the next two days of the workshop impeccably, engaging theory and application of multilevel/mixed models on real data. The Multilevel/mixed Models sessions started with the classic random-intercept linear model, where several approaches for fitting this type of model, along with the associated benefits and assumptions were discussed. The second session had the focus on random coefficients and the various covariance structures that can be imposed with multiple random-effects terms. On his second day, Bobby covered various methods for fitting more complex models, including crossed-effects models, growth curve models, and models with complex and grouped constraints on covariance structures. In the last session, the predictions, model diagnostics, and other post-estimation tasks were discussed along with other types of responses, in particular binary and count responses.

We thank all participants for their support and comments.
Please keep visiting MEAFA's website for future workshops.

Across the two days, the discussion comprised many contemporary questions, such as the relationship between accounting numbers and market value, a defense of positive accounting research, the disclosure incentives in market micro-structure, the use of logit models to forecast takeovers, etc.

MEAFA would like to thank everyone for the attendance and especially for their invaluable multi-disciplinary contributions that covered the broad spectrum of MEAFA's research area.

Special thanks extend to the six international speakers (in alphabetical order):

• Prof Michael Bradbury, Massey University, NZ
• Prof Paul Dunmore, Massey University, NZ
• Prof Stephen Penman, Columbia University, US
• Dr Ivana Raonic, City University, UK
• Prof Mark Tippett, Loughborough University, UK
• Prof Roger Willett, University of Otago, NZ

Prof Roger Willet started the workshop presenting two papers. The first discussed the consequences of using mis-specified additive models of the relationship between accounting numbers and market value and draw particular attention to the importance of the assumption of ‘homogeneous’ firm parameters in cross-section estimation. On his second paper, Prof Willet explained how a fixed effects panel analysis can be used to approximate the average data generating process of the firms in the sample, and pointed out the slightly systematic impact of accounting variables compared to the autoregressive component in market value. Following the presentation, Prof Mark Tippet reviewed the important implications of the paper and brought out the thorny issue of the efficiency or otherwise of their parameter estimation procedures. The discussant concluded suggesting that the model’s inability to account for negative earnings and/or book values is a significant issue and it still unclear from the paper how such companies can be handled.

Dr Maurice Peat initiated the presentation reviewing the bankruptcy forecasting literature in the past decades and afterwards deliberated about what makes a ‘good’ probability forecast and its economic value. Dr Peat presented the applications of the method of estimation probability prediction model to Ohlson Models and concluded that the probabilities produced by this style of models are apparently not of themselves “bankable” or worth their cost.

Dr Demetris Christodoulou offered an explanation of the dynamic relationship between accounting earnings and stock market returns, including the speed with which market returns are reflected in earnings within the current period and in the long run. Dr Christodoulou presented a unified analytical framework within which previous specifications are encompassed as special case models and can be used to evaluate the properties of earnings in a dynamic panel data context. Prof Penman discussion's report commented on the usefulness of generalised model and its econometric power but also highlighted certain issues that need to be addressed. The most notable include: (i) the integration of economic theory consistent with the generalised framework, (ii) demonstration of how the model can be reduced to reflect special case accounting approaches and not just to analytical models and (ii) mapping to the Easton, Harris and Ohlson (1992) framework.

Prof Paul Dunmore debated the positive accounting in the broader sense of a research program which aims at developing causal explanations of human behaviour in accounting settings. Prof Dunmore targeted the common problems related to positive research, such as the casual construction of theoretical models to be tested, undue reliance on the logic of hypothesis testing, a lack of interest in the numerical values of parameters, etc. Prof Dunmore’s concluding remarks emphasised how positive research seems largely incapable of achieving the scientific objectives and its currently practice in accounting.

Prof Mark Tippet employed an empirical analysis to show that the probability distributions implied by the Schrödinger model are strongly compatible with the returns earned by the individual components of the London Stock Exchange’s FTSE All Share Index. Prof Tippet explained how the Schrödinger equation can be used to determine the wave functions of investment portfolios, and finalised arguing about the inverse relationship between the variance associated with the momentum in portfolio returns and the variance of the portfolio returns process itself. Prof Paul Dunmore opened the discussion reflecting on the momentum of a quantum particle and its equation. Prof Dunmore recommended an expansion of the momentum of the stock return and defended that the momentum should be related to an observable property of returns. Prof Dunmore concluded the debate suggesting the use of a new model with asymmetric exponential, but with non-Gaussian tails, and questioning the progress using Fokker-Planck equation and conventional mean-variance arguments.

Dr Ivana Raonic introduced the concept of transparency associated with trading stocks and commented on the different interpretations of transparency in the literature. Dr Raonic identified that, in the case of thinly traded stocks, the incentives for firms to improve disclosure of their market position and prospects depends critically upon the market microstructure. Dr Raonic extended the question suggesting that the benefits from increased disclosure may only be captured by the firms if an appropriate trading mechanism is simultaneously put in place. The comments of Prof Roger Willet and Dr Michael Falta on the paper outlined some general points regarding the structure and development of the paper that need to be improved. Prof Willet were particularly concerned with the methods used and the statement of the hypothesis.

Dr Maxwell Stevenson started the presentation explaining the probabilistic regression models adopted to predict takeover targets, and in special those that use financial statement variables. Dr Stevenson analysed the takeover market in Australia and empirically demonstrated that investors who are able to accurately predict firms that will be the subject of a takeover attempt should be able to earn these excess returns. Dr Richard Gerlach discussed the methodology applied in the paper and warned about the consequences from multicolinearity in accounting variables (that is a matter of construct and not empirical sampling). The argument attracted the contribution of the audience that also noted the crisis and currency factors over the years that may affect Dr Stevenson's results.

Prof Graeme Dean wrapped the workshop with an interesting discussion about the ‘Unresolved Methodological Questions at the Cross-section of Accounting and Finance’ of Ray Chambers, which counted with the participation of the audience. Prof Dean pointed out that the methods of research into accounting are much broader than the narrow positivist allegiance, extending upon primarily the works of Chambers. Prof Dean concentrated in particular on the arguably vacuous attempts to categorise accounting theory and research as either positive or normative.

The places are limited and the workshop is fully subsidised by MEAFA for research students and offered at cost for University of Sydney staff (academic or administrative).

We would greatly appreciate it if you could forward this announcement to students, academics and practitioners that may be interested.

o Mon 08 Feb: Intro to Stata (Demetris Christodoulou)
o Tue 09 Feb: Mixed models day 1 (Bobby Gutierrez)
o Wed 10 Feb: Mixed models day 2 (Bobby Gutierrez)

The new workshop is now open for reservations at:
http://meafa3.econ.usyd.edu.au/activities/2010/mixed/

Together with StataCorp we are examining the following options for satisfying the demand.

(1) Back-to-back workshops:
o Mon 08 Feb: Intro to Stata (Demetris Christodoulou)
o Tue 09 Feb: Mixed models day 1 (Bobby Gutierrez)
o Wed 10 Feb: Mixed models day 2 (Bobby Gutierrez)
o Wed 10 Feb: Intro to Stata (Demetris Christodoulou in separate lab)
o Thu 11 Feb: Mixed models day 1 (Bobby Gutierrez)
o Fri 12 Feb: Mixed models day 2 (Bobby Gutierrez)

(2) July 2010 repeat:
Every July, MEAFA offers a 5-day professional development workshop and we could integrate (or extend) that workshop to include also Bobby Gutierrez's two-day workshop on mixed models.

(3) February 2011 repeat:
Repeat exactly the same workshop next year, Feb 2011, with Bobby Gutierrez.

We would greatly appreciate it if you could vote on the above alternatives ASAP with an e-mail at meafa@econ.usyd.edu.au

Dr Michal Falta did his PhD at ETH Zürich and is currently a Lecturer at the University of Otago. His main research interest lies in financial (accounting) measurement theory applying to computational statistics and various optimisation techniques, including neural nets and genetic programming. Michael’s specific areas of research application include cost and management accounting, auditing, econometrics, portfolio theory, asset reliability, life-cycle costing and risk management.

Day 1 (10 Feb) of the workshop provides an overall introduction to Stata 11 and demonstrates how to work efficiently with reproducible and tractable routines. This day is of interest to those who want to learn how to use Stata or want become more efficient in their work and are not interested in mixed models, or to those who want to attend the days on Multilevel/mixed models and have no or little experience with Stata.
Day 1 will be presented by Demetris Christodoulou, MEAFA General Convenor.

Days 2 & 3 (11-12 Feb) of the workshop engage with the theory and application of multilevel/mixed models. These days assume basic knowledge of Stata and of standard linear regression. Those interested only in mixed models and already have basic knowledge of Stata may attend only these days. Those interested in mixed models but do not have experience with Stata should attend all three days.
Days 2 & 3 will be presented by Robert Gutierrez, StataCorp Director of Statistics.

The course will be interactive, use real data, and offer ample opportunity for specific research questions and for working exercises to enforce what is learned. Detailed notes will be provided outlining all theory and applications.

Numbers are limited and places are reserved on a first-come first-served basis. To avoid disappointement and secure a place you must fill-in the online Reservation Form at:

http://meafa.econ.usyd.edu.au/activities/2010/mixed/

Dr Sandra van der Laan joined Sydney University from Wollongong in 2001 and is currently a Senior Lecturer in Accounting. Sandra teaches both introductory accounting and auditing at the undergraduate and post-graduate level. She has also been actively engaged in research into teaching and learning in order to promote improved student learning outcomes. Her research in this area has been presented at a number of international interdisciplinary conferences. Sandra has reviewed papers for many international journals and conferences, such as Accounting, Auditing and Accountability Journal and Abacus. She has also been a guest editor for a number of special issues of journals, such as the Journal of Business Ethics and the Australian Accounting Review. Sandra's research interests lie in accounting in two broad strands of research. The first centres on accounting as a social discourse and accounting as a mechanism to discharge accountability.

Dr Jiri Svec completed his Honours and PhD at The University of Sydney and joined the Finance discipline from the University of Sydney as a Lecturer in 2008. His particular research interest is in the area of risk management within the energy markets, including the electricity, weather and carbon credit markets. Jiri is also actively involved with industry in an ongoing relationship with a merchant bank, undertaking research and development in the area of modelling and managing credit risk.