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2021/2022  KAN-CFSMO1115U  Corporate Governance and Finance

English Title
Corporate Governance and Finance

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Start time of the course Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Steen Thomsen - Department of Accounting (AA)
Main academic disciplines
  • Corporate governance
  • Economics
Teaching methods
  • Blended learning
Last updated on 18-06-2021

Relevant links

Learning objectives
  • Identify and analyse corporate governance (agency) problems.
  • Assess how corporate governance shapes corporate finance including capital structure, investment decisions and capital costs.
  • Analyse how the corporate governance of a particular company is likely to influence its economic performance.
Course prerequisites
Basic (undergraduate) knowledge of economics, finance, accounting and business strategy.
Examination
Corporate Governance & Finance:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 5 pages
Assignment type Written assignment
Duration 48 hours to prepare
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Spring
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

Case analysis covering topics taught in the course. The exam will be a corporate governance review of a particular company.

Course content, structure and pedagogical approach

The course develops economic and behavioral theories as a framework for analyzing corporate governance and value creation. For example shareholder value maximization can be implemented through contestable ownership, removal of takeover barriers, independent boards, stock option programs and legal protection of minority investors. Stakeholder value or social objectives can be implemented through other governance structures. Corporate governance in turn has implications for financial objectives, for example risk preferences or attention to stakeholders.  The course will cover agency and other governance theories, alternative governance mechanisms, international corporate governance, corporate governance codes, ownership structure, boards ,executive compensation and compliance.
 

The aim of this course is to gain an in-depth understanding of corporate governance and how corporate governance interacts with corporate finance to influence corporate performance. The course will introduce the students to corporate governance issues and teach them to analyse how different corporate governance mechanisms – like ownership and board structure, legal systems and incentives – contribute to the solution of agency problems and thereby influence corporate economic performance. Using this framework the course will then study the impact of corporate governance on corporate performance depending on company specific factors. The course will enable students to undertake a corporate governance review of an individual company including an assessment of how ownership, board structure, managerial incentives and system characteristics influence company performance. 

Description of the teaching methods
Lectures and case discussions. Some material will be uploaded as teaching videos and some will be arranged as on-line seminars
Feedback during the teaching period
Oral feedback on classroom case discussions. Exercise classes give the students the opportunity to practice writing corporate governance reviews of particular companies which will also be the topic for the final exam.
Student workload
Preparation 128 hours
Teaching 30 hours
Exam 48 hours
Expected literature

Thomsen, Steen and Conyon, Martin (2019). Corporate Governancen and Board decisions. DJOEF Publishing and NOW Publishers. London.

Last updated on 18-06-2021