Corporate Governance is an area that has grown rapidly in the last few years fuelled by high profile corporate collapses such as Enron.  The module builds on sound theoretical base to encompass the latest developments in the field worldwide.  It takes an international approach to corporate governance, contextualising its development and providing a stimulating range of academic and empirical practitioner research, and topical case studies.  It also introduces institutional and legal systems from both government and firm’s viewpoints that influence the effectiveness of corporate governance.

This module aims to discuss financial economics theories which constitute theoretical foundation of corporate governance.  The theoretical study is supported by empirical evidence worldwide in which corporate governance develops by examining the legal structure and capital market for various countries at macro level and the firms’ structure which influence the effectiveness of corporate governance at micro level.  The module is designed as substantial course in corporate finance at Master’s level appropriate to degrees in Accounting and Finance, generic Business and Management Studies and MBA.

On successful completion of this module the students will be able to: 

• Develop a critical understanding of the nature of modern corporations and the social, economic, political and legal systems that govern them 
• Understand the financial economics foundation of corporate governance 
• Examine similarities and differences across various national corporate governance systems 
• Evaluate the institutional and legal environment of corporate governance setting
• Evaluate laws and regulations that govern corporate governance practice
• Recognise key pressures for reform in national corporate governance systems
• Appreciate some of the ethical issues that arise in relation to corporate activity 
• Introduce empirical debate of corporate governance success and failure
• Introduce the latest academic research on corporate governance  

• The nature of modern corporations and it’s evolution of corporate
  governance 
• Financial Economics Theories of corporate governance 
• Development of corporate governance codes 
• Owners and stakeholders and Directors and Board Structure 
• Compensation for Directors and Auditing 
• International corporate governance development 
• Institutional and legal environment that shipping corporate governance
• Company laws and regulation affecting the effectiveness of
• corporate governance 
• Corporate governance research  

The teaching and learning strategy is designed to allow students to come to grips with the essential quantitative nature of the subject, and more importantly, to facilitate the application to practical problems.

The teaching and learning methods include: 

Essential Reading 

Mallin, C. (2010), Corporate Governance, 3^rd  Edition, Oxford University Press, ISBN: 978-0199566457

Recommended Reading 

Monks, R.A.G., and Minow, N. (2008), Corporate Governance, 4^th Edition, John Wiley & Sons Ltd, ( Oxford ). ISBN: 978-1405171069.

25/03/2010