We study problems related to the separation of ownership and control in modern corporations. 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, the theories describing them and the empirical work. 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.
- The learning outcomes of the course: ability to understand the key mechanisms of corporate governance, the policies influencing these and the empirical methods used in this subject.
- Assessment: Students have to pass a final exam. Around the middle of the course, study questions will be distributed and discussed in the class, to let students assess the type of questions they are expected to answer in the exam.
- 1. Pre-requisites:
Economics MA: Core Microeconomics, Core Econometrics
Economic Policy MA: Core Microeconomics; Data Analysis for Economic Policy