Module ECON3441: Corporate Governance

Department: Economics and Finance

ECON3441: Corporate Governance

Prerequisites

• None.

Corequisites

• None.

Excluded Combination of Modules

• None.

Aims

• The module aims to enable students to develop:
• their understanding of internal and external corporate mechanisms and their impact on principal-agent relationships as well as the efficient use of corporate, social and environmental resources and sustainability. As both internal and external corporate governance mechanisms are explored, the module builds on the student's knowledge gained during their previous studies.
• a critical appreciation of the interdependence between internal and external corporate governance mechanisms.
• skills in the application of institutional economic theories to aid the analysis of corporate governance both at the level of individual organisations and economic systems.
• a critical understanding of reasons for and consequences of international differences in corporate governance systems.

Content

• The historical development of the system of corporate governance in British companies.
• New Institutional Economic Theory (especially Principal-Agent Theory, Property Rights Theory, Resource Dependence Theory, Stakeholder Theory) as an instrument to analyse corporate governance structures.
• The role of the board of directors, and the shareholders’ general meeting in the governance of companies.
• The rationale for and impact of codes of best practice for corporate governance.
• The impact of financial markets and investor behaviour on corporate governance.
• The functions of corporate financial, social and environmental reporting and of information intermediaries for corporate governance.
• International differences in systems of corporate governance.

Learning Outcomes

• To have a critical appreciation of the role and the development of corporate governance, including an awareness of international differences in systems of corporate governance.
• To be able to critically analyse the impact of corporate governance structures on principal-agent problems and the efficient use of corporate, social and environmental resources.

• Ability to apply institutional economic theories to the analysis of corporate governance mechanisms.
• Ability to analyse interdependence between corporate governance and corporate finance with the help of institutional economic and financial theories.

• Group working skills
• Interpersonal and Written Communication - communicating ideas in the exam and the student centred learning activity
• Planning, Organisation and Time Management - e.g. by preparing for examinations, seminars and managing the the student centred learning activity
• Problem Solving and Analysis - by applying the necessary analytical skills, as well as the ability to manipulate concepts in corporate governance, in undertaking assessed work.

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

• Teaching is by lectures, seminars and support for student-centred learning. Learning takes place through attendance at lectures, preparation for and participation in seminars and private study (including student-centred learning).
• Formative assessment is by means of a group presentation and online quizzes.
• Summative assessment is by means of a written assignment.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Contribution to a group presentation, equivalent to a 1500 word essay. Participation in online quizzes.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University