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Showing posts from 2020

Corporate Control Across The World

CEO Political Ideology, Shareholder Primacy and Dividend Policy

What is the purpose of a corporation? While common law, which prevails in Anglo-Saxon countries, prescribes that the purpose of a firm is to maximize shareholder value, other legal systems tend to accord at least some importance to stakeholders other than the shareholders. For example, the German corporate law system explicitly refers to employee interests while making employee representation on boards of directors mandatory subject to firm size. While such countrywide explanations are useful in answering the question about what the purpose of a corporation should be, they are not helpful for furthering our understanding of the reasons behind the observed heterogeneity in the behaviour of firms from the same legal regime. For example, why do some firms from the same legal regime follow a more shareholder-centric approach while others prioritize the welfare of their employees over their shareholder? Importantly, how do these differences in approach affect firm policy? Read more here.

Corporate Governance for New Ventures - Course Outline

This is an updated version of my 2019 course outline, which can be found here. All of the practical cases can be obtained from Harvard Business Publishing.
COURSE DESCRIPTION Who Should Take this Course?
Corporate governance is frequently reduced to compliance and box ticking. This course will show you that corporate governance is more than this and that it can be used proactively to create value. The course will also show you that the optimal corporate governance arrangements vary across firms: What may be optimal for a mature firm may not work for an early venture, and vice-versa.

This course is aimed at three different constituencies. First, it is aimed at budding entrepreneurs who want to know more about designing the governance of their ventures in view of ultimately going public. Second, it is also aimed at those who aspire to a career as a non-executive director. Finally, the course should also be of interest to investors and other parties interested in how corporate control, o…