The course focuses on the role accounting information plays in facilitating the contracting process. Throughout the quarter, we will discuss contracting issues related to agency and information problems and the role accounting information plays to address these issues. Most classes will begin by discussing a foundational theory paper and will proceed with presentations and discussions of related empirical work. We will begin by covering main ideas from the Positive Accounting Theory. Subsequently, we will spend several weeks on compensation contracts. We will then move to debt contracting issues and will discuss the design of loan contracts with the focus on the use of control rights. We will consider contract design from both the classic agency and the incomplete contracting perspective. Throughout the class will be covering both classic papers and more recent topics. Towards the end of the course, you will present a research project idea in front of the class.