Corporate Governance

Objectives

The goal of this course is to provide an applied perspective on how to create value by determining corporate governance arrangements. It relies on both lectures and in class discussions of the assigned topics. Students are expected to participate intensely in the discussions, to come fully prepared to class, having covered all readings and thoroughly discussed assigned cases.
Questions that the course will address are the following: What do investors want about corporate governance decisions? What governance arrangements are helpful in creating value and making sure value accrues to the investors? What countries provide better governance arrangements that allow entrepreneurs and firms to raise more money to realize profitable projects? How should managers be incentivized and compensated? Should an investor sell his shares if unhappy with the company (‘Wall Street Walk’) or become an activist?

General characterization

Code

14247

Credits

1.5

Responsible teacher

António Nogueira Leite

Hours

Weekly - Available soon

Total - Available soon

Teaching language

Portuguese | English

Prerequisites

Available soon

Bibliography

The course does not follow any available textbook. Subjects were selected based on the instructor’s assessment of the relevance of the issue and the adequacy to the profile of students likely to enroll. Any of the following major corporate governance textbooks can be used to provide extra background on the different topics:
Esta unidade não tem um livreo de apoio obrigatório. Os temas foram selecionados com base na avaliação do professor sobre a sua relevância e adequação ao perfil dos estudantes. Qualquer um dos seguintes principais livros sobre governança corporativa pode ser usado para obter mais informações:

1. Robert Monks and Nell Minow, Corporate Governance, Fourth Edition, John Wiley and Sons, (2008)
2. Brian Coyle, Corporate Governance Essentials, ICSA Publishing, (2008).
3. Kenneth A. Kim and John R. Nofsinger, Corporate Governance, second Edition, Person International Edition, (2007).

Teaching method

The course involves lectures, class discussions and case discussions. Lectures and discussions are based on pre-assigned readings and cases.

Evaluation method

The assessment of this curricular unit is done together with the block of curricular units of the same area of knowledge. This assessment has 3 moments, which together define the final grade of the curricular unit:
• Individual exam with a weighting of 50% of the total mark
• Group work with a weighting of 35% of the total grade value
• Individual reflection-action exercise carried out at the end of the curricular unit, with a weighting of 15% of the total grade value. The set of individual action-reflection exercises is a journaling activity, which will constitute, at the end, a learning portfolio capable of synthesising the contributions of the Executive Master for that student.

Subject matter

1. Corporations and Corporate Governance:
1.1. the historical perspective
1.2. international experience
1.3. the agency theory of corporate governance
1.4. managerial primacy, shareholder primacy and board primacy
2. Board of Directors
2.1. Composition
2.2. Nomination
2.3. Executive Compensation
3. Shareholders.
3.1. Majority shareholders, minorities.
3.2. Shareholders activism
4. Third Parties
4.1. Accountants and auditors
4.2. Financial Reporting, Analysts and Investment Banks
4.3. Creditors and Credit Rating Agencies
5. Mergers and Acquisitions and Takeover Defenses for unsolicited takeovers

Programs

Programs where the course is taught: