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Regular version of the site

Corporate Governance

Academic Year
Instruction in English
ECTS credits
Course type:
Elective course
2 year, 3 module


Course Syllabus


Corporate governance is a relatively young and rapidly growing sub-field within the fields of economics and finance. It refers to the various aspects of governance of a modern corporation. Large variety of business organizational forms, complexity of their governance structures, conflicts of interests arising within these structures make it important to study the process of governance of a modern corporation as a separate phenomenon. Aim of the course is to familiarize students with the theory and practice of the modern corporate governance. During the course we will discuss the results of the latest and most important research in the area of the corporate governance. Students will learn about the current practices and recent reforms of corporate governance in Russia and around the world. Also students will see how the modern econometric methods are applied in empirical studies on corporate governance.
Learning Objectives

Learning Objectives

  • knowledge of theoretical background behind corporate governance research: agency theory, theory of the firm, corporate finance.
  • knowledge of the modern CG practices in developed economies and emerging markets: different models, structure and participants of CG process, the role and the level of development of corporate law
  • understanding of the problems of corporate governance specific to Russian economy: characteristics of Russian corporations, evolution of corporate ownership structure, the state of Russian corporate law, stock market and corporate investments, Russian model of corporate governance
  • understanding research papers on corporate governance and ability to do research in this area
Expected Learning Outcomes

Expected Learning Outcomes

  • Formulates definition of corporate governance. Analyses theoretical foundations of corproate governance.
  • Analyses the role of shreholders in corporate governance. Compares shareholder ownership structures in different countries.
  • Formulates the role of the board of directors in corporate governance. Analyses the structure of the board of directors, its functions and regulation.
  • Formulates agency problem with respect to the CEO. Analyses the role of CEO in relation to the board of directors. Comapres different types of CEO remuneration.
  • Discusses different types of stakeholders and their role in corporate governance. Analyses the origins of corporate social responsibility and applies economic analysis to undestanding the CSR activities of firms.
  • Uses different measures of the quality of corporte governance at the firm level and at the country level. Analyses and compares corporate governance ratings of firms.
  • Compares different models of corporate governance. Formulates specific features of the Russian model of corporate governance. Analyses convergence of corporate governance systems.
Course Contents

Course Contents

  • Introduction. Theoretical foundation of corporate governance
    Notion and definition of corporate governance. Theoretical foundations: agency theory, theory of the firm, contract theory, theory of corporate finance.
  • The role of shareholders
    Types of shareholders. Their role in corporate governance. Shareholder ownership structures around the world.
  • The role of the board of directors
    Board of directors as a nexus of corporate governance relations. Structure of the board of directors. Board functions. Regulation of the board. The role of independent directors.
  • The role of top-managers (CEO)
    Chief executive officer of the firm. CEO and agency problem. CEO and the board of directors. CEO remuneration. CEO turnover.
  • The role of stakeholders and corporate social responsibility
    Types of stakeholders and their role in corporate governance. The origins of corporate social responsibility (CSR). Types of CSR activities, socially responsible investments. CSR through economic lens.
  • Measuring the quality of CG and CG ratings
    Measuring the quality of corporte governance at the firm level and at the country level. Corporate governance ratings: criteria, cross-country differences.
  • Comparative CG and the Russian model of CG
    Cross-country differences in the models of corporate governance. Specific features of the Russian model of corporate governance. Globalization and convergence of corporate governance systems.
Assessment Elements

Assessment Elements

  • non-blocking Group work in class
  • non-blocking Test 1
  • non-blocking Presentation
  • non-blocking Term paper
  • non-blocking Test 2
Interim Assessment

Interim Assessment

  • Interim assessment (3 module)
    0.12 * Group work in class + 0.18 * Presentation + 0.2 * Term paper + 0.1 * Test 1 + 0.4 * Test 2


Recommended Core Bibliography

  • Andrei Shleifer, Florencio Lopez-de-Silanes, & Rafael La Porta. (2008). The Economic Consequences of Legal Origins. Journal of Economic Literature, (2), 285. https://doi.org/10.1257/jel.46.2.285
  • Bebchuk, L. A., & Weisbach, M. S. (2010). The State of Corporate Governance Research. Review of Financial Studies, 23(3), 939–961. https://doi.org/10.1093/rfs/hhp121
  • Bebchuk, L. A., Cohen, A., & Wang, C. C.-Y. (2013). Learning and the Disappearing Association Between Governance and Returns. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.3402CF4E
  • Black, B., & Kim, W. (2012). The effect of board structure on firm value: A multiple identification strategies approach using Korean data. Journal of Financial Economics, (1), 203. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.jfinec.v104y2012i1p203.226
  • Claessens, S., & Yurtoglu, B. B. (2013). Corporate governance in emerging markets: A survey. Emerging Markets Review, (C), 1. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.ememar.v15y2013icp1.33
  • Evidence on the international evolution and convergence of corporate governance regulations. (2011). Journal of Corporate Finance, 17(5), 1531–1557. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsnar&AN=edsnar.oai.tilburguniversity.edu.publications.071dd33d.5b0b.4b76.8243.08e20a5261f4
  • Gompers, P., Ishii, J., & Metrick, A. (2003). Corporate Governance and Equity Prices. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.21F82495
  • Gugler, K., Ivanova, N., & Zechner, J. (2014). Ownership and control in Central and Eastern Europe. Journal of Corporate Finance, (C), 145. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.corfin.v26y2014icp145.163
  • Iwasaki, I. (2008). The Determinants of Board Composition in a Transforming Economy: Evidence from Russia. RRC Working Paper Series. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.hit.rrcwps.9
  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, (4), 305. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.jfinec.v3y1976i4p305.360
  • Kitzmueller, M., & Shimshack, J. (2012). Economic Perspectives on Corporate Social Responsibility. Journal of Economic Literature, 50(1), 51–84. https://doi.org/10.1257/jel.50.1.51
  • Lucian A. Bebchuk, & Jesse M. Fried. (2005). Pay Without Performance: Overview of the Issues. Journal of Applied Corporate Finance, (4), 8. https://doi.org/10.1111/j.1745-6622.2005.00056.x
  • Miriam Schwartz-ziv, & Michael S. Weisbach. (2013). What do Board Really do? Evidence from Minutes of Board Meetings. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.B1F95F2A
  • Rafael La Porta, Florencio Lopez-De-Silanes, & Andrei Shleifer. (1999). Corporate Ownership Around the World. Journal of Finance, (2), 471. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.bla.jfinan.v54y1999i2p471.517
  • Reinhardt, F. L., Stavins, R. N., & Vietor, R. H. K. (2008). Corporate Social Responsibility Through an Economic Lens. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.DBA5307A
  • Steven N. Kaplan, & Bernadette A. Minton. (2012). How Has CEO Turnover Changed? International Review of Finance, (1), 57. https://doi.org/10.1111/
  • Steven N. Kaplan. (2012). the source. Executive Compensation and Corporate Governance in the U.S.: Perceptions, Facts and Challenges. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.CE1351F3
  • Tirole, J. (2001). Corporate Governance. Econometrica, (1), 1. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.ecm.emetrp.v69y2001i1p1.35

Recommended Additional Bibliography

  • Borghesi, R., Houston, J. F., & Naranjo, A. (2014). Corporate socially responsible investments: CEO altruism, reputation, and shareholder interests. Journal of Corporate Finance, (C), 164. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.corfin.v26y2014icp164.181
  • CUÑAT, V., GINE, M., & GUADALUPE, M. (2012). The Vote Is Cast: The Effect of Corporate Governance on Shareholder Value. Journal of Finance (John Wiley & Sons, Inc.), 67(5), 1943–1977. https://doi.org/10.1111/j.1540-6261.2012.01776.x
  • Fauver, L., Hung, M., Li, X., & Taboada, A. G. (2017). Board reforms and firm value: Worldwide evidence. Journal of Financial Economics, (1), 120. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.jfinec.v125y2017i1p120.142
  • Reena Aggarwal, & Miguel Ferreira. (2011). Does governance travel around the world? Evidence from institutional investors. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.91864299