ØABED4400 Corporate Governance Course description

The course builds on the insight that a company's management does not necessarily satisfy the objectives of investors and credit providers. Incentives and controls systems are important means of eliminating goal conflicts. Agency models (adverse selection and moral hazard) are therefore important in the course. Recent research and current articles will play a key role in the course.

Students have to hand in written assignments by set deadlines during the semester. Approval of the assignments is a condition for taking the exam. If the assignment is not approved, the student will be given one opportunity to submit an improved version. The lecturer will inform students of deadlines for submission.

None.

Knowledge

The student has

• in-depth knowledge of how internal and external mechanisms can contribute to increasing value creation by improving corporate governance. (Internal mechanisms deal with such factors as the independence of the board of director and the biggest owner's ownership interest, while external mechanisms include the importance of bank connections, competition in the product market and public regulation)
• an overview of the most important case areas in and results from empirical research on corporate governance
• deep insight into financial economics and a critical understanding of relevant techniques, statistical methods and data sources

Skills

The student is capable of

• applying relevant techniques, statistical methods and data sources in different investigations as an integrated part of theoretical and empirical discussions
• processing formal models and conducting own investigations by choosing elements that are important in an organisation and management perspective

Written exam (4 hours) at the end of the semester.

The course is taught in plenary lectures, and students work on and discuss different assignments in groups and plenary sessions.

Two written assignments must be handed in by set deadlines during the semester. The scope of the assignment (number of pages) varies depending on the nature of the assignment. Approval of the assignments is a condition for taking the exam. If an assignment is not approved, the student will be given one opportunity to submit an improved version. The lecturer will inform students about deadlines for submission.

Written exam (four hours) is held at the end of the semester.

None

On successful completion of this subject the candidate will have the following knowledge, skills and general competence.

Knowledge

The student has

• advanced knowledge about how companies raise private and public capital, decide on capital structures and implement valuations
• advanced knowledge about how companies can engage in value enhancing strategies and complete mergers and acquisitions (M&As)
• advanced knowledge about how companies determine payout policies and executive compensation

Skills

The student can

• review and discuss key concepts in corporate finance
• apply knowledge acquired and relevant theories to his/her work with his/her master's thesis

Competence

The student is able to analyze and propose solutions to contemporary corporate finance problems managers of companies face in their day to day business.

The course is taught in plenary lectures, and students work on and discuss different assignments in groups and plenary sessions. Students are expected to play an active role in lectures and seminars. Students will also be required to discuss papers and course themes during lectures and seminars.