Delivered at:: Department of Finance

Course type:: Elective course

When:: 4 year, 1, 2 module

Instructors

Mailov, Edward R.

Rogova, Elena

Full Syllabus

Abstract

General purpose of this course is students’ acquaintance with principles of Corporate Governance and understanding its importance for companies’ performance. It is aimed at the creation of competencies in the following fields: - Understanding CG principles; - Defining models of CG in different legal and economic systems; - Understanding the connections between CG, corporate finance, corporate performance; - Analysing the reporting; - Assessment of the CG efficiency; - Acquaintance with CG standards and best practices. Corporate Governance is a complex course, synthesizing knowledge and skills in various fields - from law to accountancy. Non-financial issues of CG are now a hot point in theory and practice and should be highlighted specially.

Learning Objectives

To make clear the principles of corporate governance (CG)
To provide tools for analysis of a company’s corporate governance system
To create the knowledge and understanding of CG models
To develop the skills in analysis of CG relationship with companies’ performance
To acquire the knowledge of basic functions of CG, key financial and non-financial stakeholders, the role of financial and non-financial institutions in a company’s governance, key concepts of CG
To acquire the ability to analyze principles of decision-making, to determine the key interests of major stakeholders, to analyse the system of CG
To acquire the skills of matching CG decisions and a company’s strategy, alongside taking ethical and reasonable, data-driven CG decisions

Expected Learning Outcomes

Students should know best corporate governance practices
Students should understand drivers of CG
Students should understand features of each model
Students should understand principles of board composition
Students should understand principles of corporate goals and strategy forming
Students should understand recognize stakeholders’ interests in corporate governance
Students should understand the relationship between management compensation and companies’ performance
Students should understand the relationship between ownership theories and corporate governance practices
Students should understand principles of corporate investment and financial decision-taking

Course Contents

What is Corporate Governance?
Models of Corporate Governance
Theories of Ownership and Government Cycles
Stakeholders and Stakeholders’ Maximization
The Role of the Board. Management compensation
CG standards and practices

Assessment Elements

Midterm Test
Open book test lasts for 80 minutes
Home Assignment II Individual project. Analysis of CG system of a public company
Analysis of CG system of a public company of your choice. Detailed guidelines will be posted in advance.
Class activities
Each seminar students get either quizz, or a group work.
Home Assignment II. Case Analysis
The case illustrates the relations between management decisions and stakeholders' interests.
Home Assignment I. Group real case analysis
Corporate frauds analysis in the form of text report and oral presentation. Detailed guidelines will be posted in advance.
Exam

Interim Assessment

2021/2022 2nd module
0.15 * Midterm Test + 0.4 * Exam + 0.1 * Home Assignment II Individual project. Analysis of CG system of a public company + 0.15 * Class activities + 0.2 * Home Assignment I. Group real case analysis

Bibliography

Recommended Core Bibliography

Monks, R. A. G., & Minow, N. (2011). Corporate Governance (Vol. 5th ed). Chichester, West Sussex, U.K.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=499656

Recommended Additional Bibliography

Erkens, D. H., Hung, M., & Matos, P. (2012). Corporate governance in the 2007–2008 financial crisis: Evidence from financial institutions worldwide. Journal of Corporate Finance, (2), 389. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.corfin.v18y2012i2p389.411
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, (4), 305. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.jfinec.v3y1976i4p305.360
Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x

Bachelor’s Programme 'Economics'

Study Office

Corporate Governance