Overview

The content may include but will not be limited to the form and functions of modern corporations, the role and purpose of economic regulation and the development and the role of corporate governance systems and codes. In this module we will explore the importance of corporate ownership and control, the role of the board and professions in corporate governance arrangements. This discussion will be augmented through consideration of the performance and remuneration of senior management and current International issues of corporate governance and regulation. In particular, drawing on economic theory the module will examine how executive compensation contracts provide incentives for executives to behave in specific ways, what the benefits are of a heterogeneous board of directors, what effects might one expect from gender differences, how firms can set their compensation policy to enhance effort, and the increasing importance of culture in affecting executive behaviour and firm performance. The module will help to develop understanding by considering whether theoretical predictions are supported by empirical evidence.

Assessment Strategy

-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.

-good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.

-excellent -A- to A+ (70%+): Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

-another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Critically appraise regulatory actions and proposals to reform compensation arrangements including the emerging importance of corporate culture within firms.

• Critically appraise the roles through which corporate governance is realised, including the role of the board of directors, the rights and responsibilities of company owners and the positions of other stakeholders in the firm.

• Critically discuss the behaviour and form of the social, economic, political and legal systems that govern the modern firm.

• Critically discuss the incentive structures that are implicit in executive compensation contracts affects the behaviour of executive officers, which, in turn, affects firm performance outcomes; and to consider whether firms can use compensation policy to deliver performance gains.

• Critically explain methods concerned with the assessment of both corporate governance and regulation, internal and external to the firm.

• Examine similarities and differences which exist across different corporate governance systems in both the UK and other modern nation states.