| Learning objectives |
- be able to discuss the concepts of incomplete contracts, moral
hazard, asymmetry of information etc. and critically analyse the
agency issues in public and private corporations
- be able to identify the opportunities and potential pitfalls in
the use of incentive based remuneration as a tool to motivate
managers and to critically asses the efficiency of various
incentive schemes
- be able to identify the relevance of corporate laws in
mitigating the agency problems in the corporations
- be able to identify the benefits and downsides associated with
various types of structures, such as corporations with concentrated
ownership, family firms, etc. and to be able to critically assess
the specifics of these governance structures in comparison to firms
with dispersed ownership and control
- be able to critically assess the structure of corporate boards
and discuss its implications for board behaviour and firm
performance
- be able to identify and elaborate on the main barriers to
efficient functioning of the board of directors and other corporate
governance mechanisms (both from standard economics and behavioral
economics perspective)
- be able to critically assess selected elements of governance
codes, and to be able to apply these recommendations and the
acquired knowledge of corporate governance to real world
cases
|
| Prerequisites for registering for the exam
(activities during the teaching period) |
|
Number of compulsory
activities which must be approved (see section 13 of the Programme
Regulations): 1
Compulsory home
assignments
The students need to get one out of two case analyses in groups
approved in order to be registered for the exam.
Students will not have extra opportunities to get the required
number of compulsory activities approved prior to the ordinary
exam. If a student has not received approval of the required number
of compulsory activities or has been ill, the student cannot
participate in the ordinary exam.
If a student prior to the retake is still missing approval for the
required number of compulsory activities and meets the
pre-conditions set out in the program regulations, an extra
assignment is possible.
The extra assignment is a 10 page home assignment that will cover
the required number of compulsory activities. If approved, the
student will be able to attend retake.
|
| Examination |
|
Firm Theory
and Corporate Governance:
|
| Exam
ECTS |
7,5 |
| Examination form |
Written sit-in exam on CBS'
computers |
| Individual or group exam |
Individual exam |
| Assignment type |
Case based assignment |
| Duration |
4 hours |
| Grading scale |
7-point grading scale |
| Examiner(s) |
One internal examiner |
| Exam period |
Summer |
| Aids |
Closed book: no aids
However, at all
written sit-in exams the student has access to the basic IT
application package (Microsoft Office (minus Excel), digital pen
and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player,
Windows Media Player), and the student is allowed to bring simple
writing and drawing utensils (non-digital). PLEASE NOTE: Students
are not allowed to communicate with others during the
exam. |
| Make-up exam/re-exam |
Same examination form as the ordinary exam
If the number of registered candidates for the make-up
examination/re-take examination warrants that it may most
appropriately be held as an oral examination, the programme office
will inform the students that the make-up examination/re-take
examination will be held as an oral examination
instead.
|
|
| Course content, structure and pedagogical
approach |
|
An applied case-based economics course. It complements the
courses Corporate Finance and Industrial Organization.
The course is a topic course, covering topical issues in corporate
governance. We begin with a general introduction to agency problems
in modern corporations and proceed to analyse governance solutions
to these problems. We first discuss the theory on incentives
and the current issues in the executive compensation. We then
continue with the role of owners in firm governance, and give
special attention to family firms. We also analyse how the legal
framework facilitates and supports the functioning of the
governance mechanisms. We look at the board of directors and
discuss how it changes with the life cycle of the firm. We finally
discuss how governance issues relate to the theory of the firm. For
many of the topics, the standard economics literature will be
complemented with findings from behavioral economics
(behavioral agency).
|
| Description of the teaching methods |
The format of the course is based on three
elements:
1. Case analysis
2. Lectures and discussion on the newest relevant research in
corporate governance.
3. Guest lectures by representatives of business
community. |
| Feedback during the teaching period |
| Feedback will be provided either as part of group
works or discussions in the class. |
| Student workload |
| Classes |
33 hours |
| Exam |
4 hours |
| Preparation |
169 hours |
|
| Expected literature |
|
Collection of cases and articles on corporate
governance.
|
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