Corporate Governance
Objectives
The goal of this module is to provide
participants in the program with the tools to assess the quality of corporate
governance of organizations. In addition, participants will leave the module
with a deep understanding of the tools that are available to implement
effective governance structures in organizations. We will discuss which
mechanisms, both external as well as internal, that contribute to good
governance and when it is appropriate to use them in practice.
General characterization
Code
14228
Credits
3
Responsible teacher
Rui Alexandre Silva
Hours
Weekly - Available soon
Total - Available soon
Teaching language
Portuguese | English
Prerequisites
Available soon
Bibliography
JENSEN AND MECKLING (1976). “THEORY OF THE
FIRM: MANAGERIAL BEHAVIOR, AGENCY COSTS AND OWNERSHIP STRUCTURE.”
FAMA AND JENSEN (1983) SEPARATION OF OWNERSHIP AND CONTROL.
MONKS AND MINOW. CORPORATE GOVERNANCE (5TH ED.).
STEVEN KAPLAN AND JOSHUA RAUH, “IT’S THE MARKET: THE BROAD-BASED RISE IN THE
RETURN TO TOP TALENT,” JOURNAL OF ECONOMIC PERSPECTIVES (2013).
EDMANS, ALEX. GROW THE PIE: HOW GREAT COMPANIES DELIVER BOTH PURPOSE AND
PROFIT. CAMBRIDGE UNIVERSITY PRESS, 2020.
GIROUD, XAVIER, AND HOLGER M. MUELLER. "DOES CORPORATE GOVERNANCE MATTER
IN COMPETITIVE INDUSTRIES?." JOURNAL OF FINANCIAL ECONOMICS 95, NO. 3
(2010): 312-331.
BERTRAND, MARIANNE, AND SENDHIL MULLAINATHAN. "ENJOYING THE QUIET LIFE?
CORPORATE GOVERNANCE AND MANAGERIAL PREFERENCES." JOURNAL OF POLITICAL
ECONOMY 111, NO. 5 (2003): 1043-1075.
GUHAN SUBRAMANIAN ,CORPORATE GOVERNANCE 2.0, HARVARD BUSINESS REVIEW 2015
Teaching method
The module will be delivered using a series of
lectures, where participants will be exposed to the latest insights. In
addition, participants will also be asked to discuss a series of case studies.
The mix of theoretical insights from academic research together with the
practical applications of the case studies will provide the optimal combination
for effective knowledge acquisition of the material.
Evaluation method
The assessment of this CU is done together with
the block of CUs of the same area of knowledge. This assessment has 3 moments,
which together define the final grade of the CU:
•Individual exam with a weighting of 50% of the total mark
•Group work with a weighting of 35%
•Individual reflection-action exercise carried out at the end of the curricular
unit, with a weighting of 15%. The set of individual action-reflection
exercises is a journaling activity, which will constitute a learning portfolio
capable of synthesising the contributions of the Executive Master for that
student.
Subject matter
In this module, we will discuss a range of
topics related to the corporate governance of organizations, namely, we will
cover:
- What should be the goal of a corporation (maximizing shareholder’s value or
maximizing stakeholders welfare).
- The different mechanism that exist to guarantee that corporate managers (or
other decision makers) take actions that achieve the goals of the organization
- Among the corporate governance mechanisms that we will discuss are external
governance mechanisms, such as product market competition, external monitoring,
and rules and regulations; and internal governance mechanism, such as board
structure, financial structure, and compensation.