Syllabus and Readings
Corporate Governance and Strategic Role of Board of Directors
Fall 2010 Higher School of Economics, Faculty of Economic
Lecturer: Alexander Settles, , Office 810 Kirpichnaya
Course Requirements
Research paper 12 to 15 pages on a corporate governance topic due on December 1, 2010
Written Exam – Wednesday November 10th 19.00 to 21.00
Class Schedule and Readings
1. September 15th – Introduction to Course and Lecture on Corporate Governance and the Financial Crises
2. September 22nd – Overview of Corporate Governance
Readings
Berle, Jr., A. A. and Gardiner C. Means, “Corporations and the Public Investor,” The American Economic Review, vol. 20 no. 1 (Mar., 1930) 54-71.
Tricker, R.I. ed, Corporate Governance – a subject whose time has come, Corporate Governance, Ashroft Publishing, Aldershot, UK, 2000
Schleifer, Andrei and Robert W. Vishny, “A Survey of Corporate Governance,” The Journal of Finance, Vol 52, No.2 (Jun., 1997), 737-783
La Porta, R; Lopez-de-Silanes, F; Shleifer, A; Vishny, RW. (1998) Law and finance, JOURNAL OF POLITICAL ECONOMY, 106, 6, 1113-1155.
3. September 29th – Overview of Research into Corporate Governance
Boris Durisin and Fulvio Puzone, Maturation of Corporate Governance Research, 1993–2007: An Assessment,Corporate Governance: An International Review, 2009, 17(3): 266–291.
Igor Filatotchev and Brian K. Boyd, Taking Stock of Corporate Governance Research While Looking to the Future, Corporate Governance: An International Review, 2009, 17(3): 257–265
La Porta, R, Lopez-de-Silanes, F, and Shleifer, A. (1999) Corporate ownership around the world, JOURNAL OF FINANCE, 54, 2, 471-517.
JENSEN, M.C. (1993) THE MODERN INDUSTRIAL-REVOLUTION, EXIT, AND THE FAILURE OF INTERNAL CONTROL-SYSTEMS, JOURNAL OF FINANCE, 48, 3, 831-880.
Yermack, D. (1996) Higher market valuation of companies with a small board of directors, JOURNAL OF FINANCIAL ECONOMICS, 40,2, 185-211.
4. October 6th – Valuation and Corporate Governance
Gompers, Paul A., Ishii, Joy L. and Metrick, Andrew, "Corporate Governance and Equity Prices . Quarterly Journal of Economics, Vol. 118, No. 1, pp. 107-155, February 2003
Brown, Lawrence D. and Caylor, Marcus L., "Corporate Governance and Firm Performance" (December 7, 2004)
Black, Bernard S., Love, Inessa and Rachinsky, Andrei, "Corporate Governance and Firms' Market Values: Time Series Evidence from Russia" (November 2005). McCombs Research Paper No. FIN-05-05
5. October 13th – Board of Directors
Hans van Ees, Jonas Gabrielsson and Morten Huse, Toward a Behavioral Theory of Boards and Corporate Governance, Corporate Governance: An International Review, 2009, 17(3): 307–319
Amedeo Pugliese, Pieter-Jan Bezemer, Alessandro Zattoni, Morten Huse, Frans A. J. Van den Bosch and Henk W. Volberda, Boards of Directors’ Contribution to Strategy: A Literature Review and Research Agenda, Corporate Governance: An International Review, 2009, 17(3): 292–306
Hendry, Kevin and Geoffrey Kiel, “The Role of the Board in Firm Strategy: integrating agency and organizational control perspectives,” Corporate Governance, Vol 12 No 4 October 2004, 500-520
Warther, Vincent A. “Board effectiveness and board dissent: A model of the board’s relationship to management and shareholders,” Journal of Corporate Finance, No 4 1998, 53-70
Paper topics due
6. October 20th –IPOs, Cross Listing and Corporate Governance
Certo, ST (2003) Influencing initial public offering investors with prestige: Signaling with board structures, ACADEMY OF MANAGEMENT REVIEW, Vol. 28 Issue 3, 432-446.
Stephen P. Ferris, Kenneth A. Kim and Gregory Noronha, The Effect of Crosslisting on Corporate Governance: A Review of the International Evidence, Corporate Governance: An International Review, 2009, 17(3): 338–352
Igor Filatotchev and Kate Bishop (2002) Board Composition, Share Ownership, and 'Underpricing' of U.K. IPO Firms, Strategic Management Journal, Vol. 23, No. 10, 941-955.
7. October 27th –Shareholders Rights, Information Disclosure, Transparency, and Audit Procedures
Sanjiv Sabherwal and Stephen D. Smith, Concentrated Shareholders as Substitutes for Outside Analysts, Corporate Governance: An International Review, Volume 16, Number 6, November 2008
Pedersen, Torben and Steen Thomsen (1999) Economic and Systemic Explanations of Ownership Concentration among Europe’s Largest Companies, International Journal of Economics of Business, 6(3) 367-381.
Emma García-Meca and Juan P. Sánchez-Ballesta, Corporate Governance and Earnings Management: A Meta-Analysis, Corporate Governance: An International Review, 2009, 17(5): 594–610
8. October 27th– Executive Compensation, Private Equity, and Sovereign Wealth Funds
Mike Wright, Kevin Amess, Charlie Weir and Sourafel Girma, Private Equity and Corporate Governance: Retrospect and Prospect, Corporate Governance: An International Review, 2009, 17(3): 353–375
Core JE, Holthausen RW, Larcker DF (1999) Corporate governance, chief executive officer compensation, and firm performance JOURNAL OF FINANCIAL ECONOMICS, 51, 3, 371-406.
Gilson RJ and Milhaupt CJ, (2008) Sovereign wealth funds and corporate governance: A minimalist response to the new mercantilism, STANFORD LAW REVIEW, 60, 5, 1345-1369.
9. November 3rd – Corporate Social Responsibility
Dima Jamali, Asem M. Safieddine and Myriam Rabbath, Corporate Governance and Corporate Social Responsibility Synergies and Interrelationships, Corporate Governance: An International Review, Volume 16 Number 5 September 2008
Naomi A. Gardberg and Charles J. Fombrun, Corporate Citizenship: Creating Intangible Assets Across Institutional Environments, Academy of Management Review, 2006, Vol. 31, No. 2, 329-346
Paul C. Godfrey, The Relationship Between Corporate Philanthropy and Shareholder Wealth: A Risk Management Perspective, Academy of Management Review 2005, Vol. 30, No. 4, 777- 798