Upravlenie_v_transnatsionalnykh_korporatsiakh
.pdfДержавний вищий навчальний заклад “Українська академія банківської справи Національного банку України”
Кафедра міжнародної економіки
УПРАВЛІННЯ В ТРАНСНАЦІОНАЛЬНИХ КОРПОРАЦІЯХ
CORPORATE GOVERNANCE
IN MULTINATIONALS
Методичні рекомендації щодо підготовки до семінарських занять і самостійного вивчення
дисципліни, що викладається англійською мовою
Для студентів напряму підготовки 6.030503 “Міжнародна економіка”
освітньо-кваліфікаційного рівня “бакалавр” денної форми навчання
Суми ДВНЗ “УАБС НБУ”
2014
УДК [005:339.92](073)
У67
Рекомендовано до видання методичною радою факультету банківських технологій Державного вищого навчального закладу “Українська академія банківської справи Національного банку України”, протокол № 4 від 19.11.2013.
Розглянуто та схвалено на засіданні кафедри міжнародної економіки, протокол № 5 від 28.10.2013.
Укладачі:
О. М. Костюк, доктор економічних наук, професор, ДВНЗ “Українська академія банківської справи НБУ”;
Д. А. Говорун, кандидат економічних наук, ДВНЗ “Українська академія банківської справи НБУ”
Рецензенти:
М. І. Макаренко, доктор економічних наук, професор, завідувач кафедри міжнародної економіки
ДВНЗ “Українська академія банківської справи НБУ”;
Л. І. Михайлова, доктор економічних наук, професор, завідувач кафедри менеджменту зовнішньоекономічної діяльності та євроінтеграції Сумського національного аграрного університету
Управління в транснаціональних корпораціях=Corporate У67 governance in multinationals [Текст] : методичні рекомендації щодо підготовки до семінарських занять і самостійного вивчення дисципліни, що викладається англійською мовою / Державний вищий навчальний заклад “Українська академія банківської справи Національного банку України” ; [уклад. О. М. Костюк, Д. А. Говорун]. –
Суми: ДВНЗ “УАБС НБУ”, 2014. – 37 с.
Видання містить завдання для проведення практичних, семінарських занять і для самостійного вивчення дисципліни. Спрямоване на формування практичних навичок з курсу “Управління в транснаціональних корпораціях”, що викладається англійською мовою.
Призначене для студентів напряму підготовки 6.030503 “Міжнародна економіка” освітньо-кваліфікаційного рівня “бакалавр” денної форми навчання.
УДК [005:339.92](073)
©ДВНЗ “Українська академія банківської справи Національного банку України”, 2014
TABLE OF CONTENTS |
|
INTRODUCTION .................................................................................................. |
4 |
COURSE STRUCTURE ........................................................................................ |
5 |
EDUCATIONAL PROGRAM OF THE COURSE ............................................... |
6 |
INSTRUCTIONS FOR SEMINARS ..................................................................... |
9 |
CURRENT AND FINAL ASSESSMENT........................................................... |
30 |
APPENDIX A....................................................................................................... |
33 |
INTRODUCTION
This course covers main aspects of corporate governance in modern corporations, core theoretical findings on recent practical relations between corporations. Since corporations appeared, they have been playing fundamental role in world economic development. Multinational corporations have a great impact on world economy today. Recent studies in corporate governance cover various aspects of corporations functioning.
The main purpose of the course is to provide students with the knowledge of governance mechanisms for modern multinational corporations according to world well-known theoretical basis and experience of practitioners.
Subject of the course – governance mechanism in multinationals. After completing this course the student should be able to:
orient in corporate governance concept and main theoretical issues;
critically analyze, select and apply various models of corporate governance in companies;
apply core principles of corporate governance in industrial companies and banks;
analyze and explain governance structure in a company;
give some recommendations to improve corporate governance of corporations;
orient in national and international law concerning corporate governance;
communicate gathered information, identified problems and solu-
tions in the field of corporate governance through written assignments and oral presentations.
Forms of studying the course include lectures, seminars and students’ individual work.
ДВНЗ “Українська академія банківської справи НБУ”
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COURSE STRUCTURE
Hours
Topics including
Total Lectures Seminars Individual work
Module 1. Corporate Governance Essentials
Topic 1. Corporate |
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Governance: Evolution |
12 |
4 |
4 |
|
4 |
of the Term |
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Topic 2. Corporate |
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Governance: Evolution |
12 |
4 |
4 |
|
4 |
of Theories of Corporate |
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Governance |
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Topic 3. Corporate |
12 |
4 |
4 |
|
4 |
Governance Concepts |
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Topic 4. Corporate |
10 |
4 |
2 |
|
4 |
Governance Models |
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Topic 5. Independent |
10 |
4 |
2 |
|
4 |
Directors |
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Tests |
4 |
– |
2 |
|
2 |
Total for Module 1 |
60 |
20 |
18 |
|
22 |
Module 2. Corporate Governance Specifics: Banks |
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Topic 6. Board of Directors |
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and Board Committees |
12 |
4 |
4 |
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4 |
Practices in Banks |
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Topic 7. Directors’ |
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Remuneration Practices |
12 |
4 |
4 |
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4 |
in Banks |
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Topic 8. Corporate |
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Governance in Banks and |
10 |
4 |
2 |
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4 |
Non-bank Corporations: |
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a Search for Differences |
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Topic 9. Corporate |
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Governance: |
10 |
4 |
2 |
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4 |
Regulation and Reforms |
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Tests |
4 |
– |
2 |
|
2 |
Total for Module 2 |
48 |
16 |
14 |
|
18 |
Total hours |
108 |
36 |
32 |
|
40 |
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ДВНЗ “Українська академія банківської справи НБУ”
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EDUCATIONAL PROGRAM OF THE COURSE
MODULE 1. Corporate Governance Essentials
Topic 1. Corporate Governance: Evolution of the Term
Origin of the term “corporate governance”. Evolution of the term “corporate governance”. Bob Tricker (1984) and the role of corporate control. Adrian Cadbury (1992) and the role of corporate governance as a system. Cadbury Report. Polly Peck International (PPI). Margaret Blair (1995) and the role of legal, cultural, and institutional arrangements in defining corporate governance. Monks and Minow (1995) and the relationships inside of the system. Shleifer and Vishny (1997) and the financial context of the term. Shann Turnbull (1997) and the institutional context of the term. Hiroshi Osano (2000) and the interest of stakeholders and resources allocation. Anglo-American approach to the term “corporate governance”. Continental European approach to the term “corporate governance”. Japanese approach to the term “corporate governance”.
Topic 2. Corporate Governance: Evolution of Theories of Corporate Governance
Adolf Berle & Gardiner Means (1932) and the essentials of corporate governance. Separation of ownership and control. Ownership types. Ronald Coase (1937) and the Theory of the Firm. Agent – principal model. Executive compensation. Residual Control. Herbert Simon (1957) and the Theory of the Bounded Rationality. Irrational behavior. Asymmetric information. Michael Jensen and William Meckling (1972) and the Agency Theory. Agency costs. Conflict of interests. Managerial behavior. Ownership structure. Chairman – CEO duality. Aldrich & Pfeffer (1976) and Resource Dependence Theory. Inter-organizational dependencies. External Control. Oliwer Williamson (1981) and Transaction Cost Theory. Transaction costs economics. Managerial opportunism. Transaction. Transaction costs. Independent directors. Internal control. Edward Freeman (1984) and Stakeholder Theory. Stakeholders. Reporting. Board Committees. Donaldson, Davis, Schoorman (1997) and Stewardship Theory. Role of CEO in corporation. Fiduciary duties of directors. Lack of independence. Enron case.
Topic 3. Corporate Governance Concepts
Monistic concept of corporate governance. Shareholders. Main conditions for the monistic concept of corporate governance. Dualistic concept of corporate governance. Employees. Main conditions for the dualistic concept of corporate governance. Employee representation in the board of di-
ДВНЗ “Українська академія банківської справи НБУ”
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rectors. Pluralistic concept of corporate governance. Stakeholders. Main conditions for the pluralistic concept of corporate governance. Legal provisions. Corporate governance codes. National legislation in USA, Germany, Japan.
Topic 4. Corporate Governance Models
Outsider and insider models of corporate governance. Minority and majority shareholders. Unitary board model. Annual general meeting of shareholders. Board of directors. Directors. Board Committees. Two-tier board model. Board of employees. Supervisory board. Management board.
“Statutory auditors” model in Japan. Board of statutory auditors. External audit. “Hybrid” model in Japan. Japanese unitary board model. Decision making in various corporate governance models.
Topic 5. Independent Directors
The meaning of the term “independent director”. The role of independent directors. Importance of independent directors. System of regulators of independent directors: international institutions, professional unions and governmental institutions, stock exchanges, corporations. National codes of corporate governance in light of independence criteria. The Cadbury code 1992. German code of corporate governance. NYSE Euronext independence criteria. NASDAQ criteria for independence directors. Tokyo Stock Exchange and independent directors. Securities Exchange Commission and independence criteria. Corporate criteria for directors’ independence. National legislation about directors’ independence.
MODULE 2. Corporate Governance Specifics: Banks
Topic 6. Board of Directors and Board Committees Practices in Banks
Models of board of directors applied in banks. Role of committees in banks. Audit committee in banks. Nomination committee in banks. Remuneration committee in banks. Role of risk committee in banks. Corporate governance committee in banks. Finance committee in banks. Policy committee in banks. Corporate social responsibility committee in banks. Executive committee in banks. Fama – Jensen model of decision making and committees in banks. Establishing the committees in banks. The major requirements for board committees from stock exchanges, national regulatory institutions, international regulatory institutions, corporate institutions. International practices of the board committees.
ДВНЗ “Українська академія банківської справи НБУ”
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Topic 7. Directors’ Remuneration Practices in Banks
Executive directors’ remuneration. Base pay and its role in remuneration system for executives. Annual bonuses. Long-term incentive plans for executives. Stock options. Restricted stock awards. Retirement plans. Insurance plans. Miscellaneous executive perquisites. Remuneration structure. Executives’ remuneration regulation. Non-executive directors’ remuneration in banks. Fees for serving in the board of directors. Fee for chairmanship. “Pay-for-presence” issue. National peculiarities in nonexecutive directors’ remuneration. Risk management in banks and remuneration issues.
Topic 8. Corporate Governance in Banks and Non-bank Corporations: a Search for Differences
Corporate Governance in Banks and Non-bank Corporations: same features and differences. Legal framework for corporate governance in banks and non-bank corporations. Fiduciary duties of directors in banks and non-bank corporations. Specifics in shareholder equity. Regulatory oversight of banks and non-bank corporations’ activity. Role of board of directors and board committees in banks and non-bank corporations: main specifics. Independent directors in banks and non-bank corporations. Regulation of bank capital. Basel III. Financial reporting issues in banks. Executives’ remuneration in banks and non-bank corporations.
Topic 9. Corporate Governance: Regulation and Reforms
The Financial Services Authority (UK). The Financial Reporting Council (UK). The Institute of Chartered Secretaries and Administrators (UK). The Securities and Exchange Commission (USA). The Federal Reserve Board (USA). The European Banking Authority (EU). OECD. Basel Committee on Banking Supervision. CEBS Principles on Remuneration (2009). Guidelines on Remuneration Policies and Practices (CEBS, 2010). Guidance on Audit Committees (Financial Reporting Council, 2010). Shareholder rights regulation. Remuneration regulation. Board committees regulation.
ДВНЗ “Українська академія банківської справи НБУ”
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INSTRUCTIONS FOR SEMINARS
SEMINAR 1
TOPIC 1. Corporate Governance: Evolution of the Term
Aim of the seminar: to form knowledge about theoretical fundamentals of corporate governance, its importance for modern corporations.
Outcome: students should outline evolution of approaches to define corporate governance. Students should think about personal view on corporate governance and their own definition.
Key issues to be discussed at the seminar
1.Revising lecture material. Students should pay attention to the following issues of corporate governance highlighted at the lectures:
Origin of the term “corporate governance”;
Evolution of the term “corporate governance”;
Bob Tricker (1984) and the role of corporate control;
Adrian Cadbury (1992) and the role of corporate governance as a system;
Cadbury Report;
Margaret Blair (1995) and the role of legal, cultural, and institutional arrangements in defining corporate governance;
Anglo-American approach to the term “corporate governance”;
Continental European approach to the term “corporate governance”;
Japanese approach to the term “corporate governance”.
2.For this seminar, please, find more information according to the materials of the lecture “Corporate governance: evolution of the term”. Try to find as many definitions of the term “corporate governance” as possible, fill in the following table and be ready to discuss them.
Author, country, organization |
Definition |
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|
Useful links
1.http://www.businessdictionary.com/definition/corporategovernance.html
2.http://www.corpgov.net/library/definitions.html
Literature
1.Farinha, J. “Corporate Governance: a Review of the Literature”, Faculdade de Economia, Universidade do Porto, 2003.
2.Hasan, Z. “Corporate Governance from Western and Islamic Perspectives”, the Annual London Conference on Money, Economy and Management in 3rd–4th July 2008, United Kingdom.
ДВНЗ “Українська академія банківської справи НБУ”
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3. Kostyuk A. N. Corporate Governance : textbook / A. N. Kostyuk,
U. Braendle, R. Apreda. – Sumy : Virtus Interpress, 2007. – 424 p.
4.Phan, P. “Review of Literature & Empirical Research on Corporate Governance”, The Monetary Authority of Singapore, 2004.
3.Try to think over the importance of corporate governance in modern business. What are the reasons for such an attention paid to the CG theme? How could misunderstanding of the term cause corporate problems and scandals? You can use real-life examples to support your ideas.
Useful links
1.http://www.applied-corporate-governance.com/definition-of-corporate- governance.html
2.http://www.ecgi.org/codes/documents/hampel23.pdf
3.http://ivythesis.typepad.com/term_paper_topics/2009/10/corporategovernance.html
4.Sometimes people see no distinction between governance and management. What is the difference between these two concepts?
5.Find information about the evolution of corporations. You can make a report.
SEMINAR 2
TOPIC 1. Corporate Governance: Evolution of the Term
Aim of the seminar: to form knowledge about theoretical fundamentals of corporate governance, its importance for modern corporations.
Outcome: students should understand the main differences between the financial and institutional context of the term. They also should understand the necessity of appropriate usage of the term in light of success of a corporation.
Key issues to be discussed at the seminar
1.Revising lecture material. Students should pay attention to the following issues of corporate governance highlighted at the lectures:
Monks and Minow (1995) and the relationships inside of the system;
Shleifer and Vishny (1997) and the financial context of the term;
Shann Turnbull (1997) and the institutional context of the term;
Hiroshi Osano (2000) and the interest of stakeholders and resources allocation.
2.Read about Italian food giant Parmalat and its huge fraud scandal in 2003. Pay attention to the establishment of the company, its corporate governance structure, the history of the collapse and its future.
ДВНЗ “Українська академія банківської справи НБУ”
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