The course discusses problems arising in a corporation when ownership and control of production assets are separated. Corporate governance refers to the mechanisms that solve two principal-agent problems, one between the owners of capital and managers, and another between the small, dispersed owners and large, concentrated blockholders of the firm.
The objective of the course is to present the main questions and answers related to corporate governance, as well as the empirical work aimed to understand the effect of the ownership structure on firm behavior. The topics include the structure of corporate ownership, the effect of ownership concentration on firm performance, the market for corporate control, effects of different types of owners on firm behavior and managerial behavior.
Understanding how board of directors in a modern corporate entity ought to act to prevent malfeasance. The role and responsibilities of the audit committee.
An understanding of internal controls, the roles and responsibilities of management, and critical monitoring activities such as internal auditing. Elements of an effective code of conduct. Understanding of the local and international legal and regulatory frameworks Components of an effective compliance program. The roles and responsibilities of independent public accountants, counsel and regulatory .
Adopt the appropriate mechanism for effective governance Value the shareholder and stakeholder rights and responsibilities Adhere to sound principles of direction and management Understand the significance of audit committee, its composition and responsibilities Implement best practices on corporate management