Module FINN2101: Corporate Governance

Department: Finance

FINN2101: Corporate Governance

Prerequisites

• None

Corequisites

• None

Excluded Combination of Modules

• None

Aims

• The module aims to enable students to develop:
• 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.
• 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

• 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.
• International differences in systems of corporate governance

Learning Outcomes

• To have a critical appreciation of the role 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.

• Interpersonal and Written Communication - communicating ideas in seminars as well as the assignment and formative assessments.
• Planning, Organisation and Time Management - by preparing for the assignment and seminars, engaging with continuous summative and formative assessment and managing group work.
• Problem Solving and Analysis - by applying the necessary analytical skills, as well as the ability to apply 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 and seminars. Learning takes place through attendance of lectures, preparation for and participation in seminars, group work and private study.
• Formative assessments guide students in the development of their knowledge and skills. They also support students' continuous engagement in learning throughout the module.
• Continuous summative assessment via multiple 15 minute online In-Year Tests serves to support students in the development of their knowledge and skills. It provides students with feedback on their learning progress and supports students' continuous engagement in learning throughout the module. The In-Year Tests will be taken during a specified 24-hour assessment window. More detailed information e.g. on the scheduling of the In-Year tests, and how missed tests due to serious adverse circumstances will be dealt with, will be provided in the module handbook.
• The summative assessment by assignment will help students to develop and evidence their understanding of corporate governance theories and relevant empirical literature, and their ability to apply what they have learned in a particular context.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Formative self-assessment exercises using computer aided assessment and classroom-based exercises involving individual and group analyses of specific corporate governance problems relevant to the learning outcomes of the module. Oral and written feedback will be given on a group and individual basis as appropriate.

■ Students who do not attend monitored activities shown under Teaching Methods and Learning Hours, or who fail to complete the summative or formative assessment(s) specified above, may be subject to the Academic Progress procedures defined in the University's General Regulation V, and may be required to leave the University.