Module ECON42215: CORPORATE GOVERNANCE

Department: Business School (Economics and Finance)

ECON42215: CORPORATE GOVERNANCE

Tied To

• L1K209: Accounting and Finance (see Postgraduate Handbook 2011-2012 for details)
• L1K309: Corporate and International Finance (see Postgraduate Handbook 2012-2013 for details)
• L1K509: International Banking and Finance (see Postgraduate Handbook 2012-2013 for details)
• L1K709: Finance (see Postgraduate Handbook 2011-2012 for details)
• N3K109: Finance
• N3K209: Finance (Accounting and Finance)
• N3K309: Finance (Corporate and International Finance)
• N3K409: Finance (Finance and Investment)
• N3K609: Finance (International Banking and Finance)
• N3K807: Islamic Finance (see Postgraduate Handbook 2014-2015 for details)
• N3K809: Islamic Finance

Pre-requisites

Corequisites

Excluded Combinations

Aims

• The module aims to provide students with:
• a specialist knowledge and understanding of the different elements of systems of corporate governance and their interdependencies;
• skills in the application of economic theories to aid the analysis of systems of corporate governance, both at the level of individual organisations and economic systems;
• a critical understanding of reasons for and the impact of differences in systems of corporate governance at international level.

Content

• Corporate Governance and the Theory of the Firm;
• The Board of Directors;
• The rationale for, and impact of, Best Practice Codes for corporate governance;
• Investors and corporate governance;
• Insider ownership and corporate performance;
• Executive and Board remuneration decisions;
• The market for corporate control: theory and evidence;
• Corporate governance and corporate finance: capital structure and investment decisions;
• International aspects of corporate governance.

Learning Outcomes

• By the end of this module students should:
• have a specialist knowledge and understanding of:
• economic theories used in the analysis of systems of corporate governance (e.g. principal-agent, transaction cost and property rights theory);
• the different elements of systems of corporate governance both in private and public organisations;
• the interdependencies between internal and external institutions of corporate governance (with particular reference to the financial aspects of corporate governance);
• international differences in systems of corporate governance;
• the development and the impact of codes of best practice in corporate governance.
• be able to appreciate the highly complex nature of systems of corporate governance in both public and private sector organizations.

• By the end of this module students should:
• be able to apply their understanding of corporate governance to analyse principal-agent problems in organizations and to develop and evaluate solutions to limit agency problems.

• written communication;
• planning, organising and time management;
• problem solving and analysis;
• using initiative;
• computer literacy.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• A combination of lectures, seminars and guided reading will contribute to achieving the aims and learning outcomes of this module. Summative assessment by written examination, including one compulsory pre-seen question, will test students' knowledge and understanding of the subject-matter, their critical judgement and problem-solving skills.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment

Group poster presentation. Additional formative assessment, and feedback, may take a number of forms such as oral feedback on work prepared by students for seminars; answers to questions either discussed during a seminar, or posted on DUO.