Handbook

This course explores a number of empirical questions and statistical techniques from corporate finance, with application to topics in corporate governance. Topics covered include applications of agency theory and optimal contracting theory, an overview of internal and external corporate control mechanisms, and a survey of major methodological approaches used in this research area including their strengths and weaknesses. The primary topics to be covered are corporate boards of directors, executive incentives, and manifestations of poor governance. We will also discuss some of the major databases used for this type of research. The topics to be covered are all in the lecturer’s area of expertise.

The course assumes a sound knowledge of the economic theory relating to the foundations of finance, including basic agency theory and financial contract theory. The course will emphasize both the major economic questions concerning the needs for and the effectiveness of these critical corporate governance mechanisms and to help researchers to create effective research designs necessary to produce compelling evidence of causal relationships.