RRR10 Corporate Governance and Management Control

• Topics

  This course addresses the structures and tools used to prevent corporate failures, fraud and the destruction of value at the top-level of corporations. The course starts by outlining the theories underlying the corporate governance problem. This includes the rise of the modern corporation and the separation of ownership and control. The principal-agent theory is used as the starting-point for understanding the basic corporate governance problem. However, the course also addresses alternative theories, such as resource dependence theory and stakeholder theory.

  Central topics:

  • Historical and theoretical background to corporate governance.
  • Boards of directors; structure, composition, and processes.
  • Ownership, corporate boards and top-management.
  • Use of accounting information by corporate boards.
  • Management control and corporate governance.
  • Corporate governance as an integrated system of controls.
  • National variety in corporate governance regulation and practice.
  • Corporate law and codes of corporate governance.
  • Sustainability and corporate governance.

  Ethics and sustainability are integrated in the course as central themes in relation to corporate scandals (e.g. Enron, RBS, Satyam). The themes are also addressed in relation to the normative question of what is the goal of a company. Sustainability is conceptualised as ESG (environmental, social and governance) factors. 

• Learning outcome

  Knowledge

  • Have knowledge about the concepts and terminology of corporate governance theory and how these concepts relate to each other, as well as related fields such as sustainability. 
  • Have an understanding about the role of the board of directors, management control and accounting techniques in corporate governance.
  • Be familiar with new thinking and research in the field of study. More specifically, the student should have basic knowledge of the results and methods used in corporate governance and management control research.

  Skills

  • Be able to analyse differences in corporate governance between various national and organizational settings.
  • Be able to collect and analyse relevant information for highlighting economic and administrative problems, as well as issues relating to ethics and sustainability.
  • Be able to reflect upon own performance in the field of study and adjust it under supervision.

  General competence

  • Have acquired a knowledge of and the ability to reflect upon and take into consideration issues relating to the governance of corporations. Also in relation to other important concepts such as sustainability.
  • Be able to communicate important concepts, theories and problems in writing and presentation, as well as through other relevant forms of communication.
  • Be able to exchange viewpoints and experience with others having a background in the field of study and thereby contribute to the development of good practice.

• Teaching

  • Lectures, case discussions, and exercises. One larger term paper, which should be presented in class. 
  • Lectures are usually given physically at NHH. Physical lectures will not be recorded. It is strongly recommended that students physically attend most of the lectures.

• Recommended prerequisites

  It is recommended that the student has at least one year of studies at the bachelor level.

• Compulsory Activity

  None.

• Assessment

  • 4 hour individual digital school exam (50%).
  • Term paper (50%) to be completed individually or in groups of maximum three students. The term paper will be handed out at the start of the semester (mid-late August), and handed in at the beginning of October. The students will have some time before handing in, to work only with the term paper.

  Both parts must be completed in the same semester.

• Grading Scale

  A - F.

• Computer tools

  Use of generative artificial intelligence tools (GAI), such as ChatGPT, must be appropriately acknowledged and cited. It is each student’s responsibility to assess the validity and applicability of any GAI output that is submitted and bears the final responsibility. Violations of this policy will be considered academic misconduct. 

• Literature

  Tricker, B. (2025). Corporate governance: Principles, policies, and practices (5th ed.). Oxford University Press., + articles and other course material.

• Permitted Support Material

  Calculator and one bilingual dictionary (Category I).

  For details see Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/

• Retake

  Retake in RRR10 will not be offered during the non-teaching semester (spring). Only mandatory bachelor courses with an individual written school exam or a home exam lasting up to one day will have a retake assessment in the non-teaching semester.

  For detailed information regarding the retake policy, please visit our website: https://www.nhh.no/en/for-students/examinations/retake-of-exams (copy URL).