IB912-15 Corporate Governance and Financial Reporting
Introductory description
The aim of the module is to discuss the position of governance in corporate contracting and how it helps align the actions of the key players in the company, which are the managers, shareholders, and relevant stakeholders.
Module aims
The main focus of the module will be on a number of corporate governance mechanisms and practices (e.g., board of directors, executive compensation, institutional shareholders, etc). The module will also discuss the role of the corporate information environment in the design of different corporate governance mechanisms and the importance of financial reporting within this context. A central question that the module will aim to answer is whether certain governance structures are unconditionally "good" or "bad" or can be driven by certain business environments. The module also aims to tie together theoretical structures and their empirical testing, thus giving the students an understanding of how different corporate governance phenomena can be explained by academic research.
Outline syllabus
This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.
Board of directors
Executive pay
Institutional investors and shareholder activism
Stakeholder engagement
Corporate governance in financial institutions
Learning outcomes
By the end of the module, students should be able to:
- Demonstrate a deep understanding of the position of governance and debt in corporate contracting, how it helps align the actions of managers with the interests of shareholders and debtholders and reduce information asymmetry.
- Critically discuss and appreciate the importance of the corporate information environment for the design of corporate governance mechanisms and the importance of financial accounting information within this context.
- Appreciate how firms choose to design their Corporate Governance mechanisms to resolve agency conflicts and how financial reporting also helps mitigate such information asymmetries.
- Demonstrate a deep understanding of how different corporate governance phenomena can be explained by academic research.
- Critically evaluate the structure and form of different corporate governance and contracting mechanisms.
- Evaluate the governance structures of specific firms.
- Debate on "sensitive" issues, such as excessive executive pay.
Indicative reading list
The main textbook will be the following (E-book can be accessed via The Library):
Larcker, D., & Tayan, B. (2021). Corporate governance matters: A closer look at organizational choices and their consequences. 3rd edition, Pearson education.
In addition, the students can use several other textbooks and academic articles. For example:
Goergen, M. (2018). Corporate governance: A global perspective. Cengage learning.
Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and capital structure. Journal of Financial Economics, 3, 305-360.
Thomsen, S. & Conyon, M. (2012). Corporate governance: Mechanisms and Systems. McGraw hill.
More papers and resources will be provided during the module.
Subject specific skills
Work in a team or independently to identify the drivers of different governance-related phenomena.
Assess the contribution and implications of accounting and corporate governance research in the area.
Perform complex analysis associated with the governance-related financial reporting practices of UK firms.
Clearly communicate arguments and justify interpretations on the corporate governance structure of UK firms.
Transferable skills
Written and oral communication
Study time
| Type | Required |
|---|---|
| Lectures | 9 sessions of 1 hour (6%) |
| Seminars | 8 sessions of 1 hour (5%) |
| Online learning (independent) | 9 sessions of 1 hour (6%) |
| Private study | 49 hours (33%) |
| Assessment | 75 hours (50%) |
| Total | 150 hours |
Private study description
Private Study to include preparation for lectures and seminars.
Costs
No further costs have been identified for this module.
You do not need to pass all assessment components to pass the module.
Assessment group D4
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
Assessment component |
|||
| Group Presentation | 30% | 22 hours | No |
Reassessment component |
|||
| Individual Assignment | Yes (extension) | ||
Assessment component |
|||
| In-person Examination | 70% | 53 hours | No |
|
|||
Reassessment component is the same |
|||
Feedback on assessment
Feedback via My.WBS
Courses
This module is Optional for:
- Year 1 of TIBS-N4N3 MSc in Accounting and Finance