Corporate Governance

The goal of the subject is to explain the relevant aspects of corporate governance, to show and analyze the conceptual framework for the consideration of corporate governance and to summarize basic problems in the scientific and professional approach to corporate governance, as well as to analyze the situation and practice of corporate governance in local companies.

The student should acquire relevant theoretical and practical knowledge in the field of corporate governance, necessary for understanding and research of complex relations between investors, managers and other stakeholders. The student is able to define the company's business strategy based on the OECD principles of corporate governance.

Concept of the corporation, the principal-agent problem; Concept, theoretical approaches and mechanisms of corporate governance with reference to the OECD principles and EU directives and recommendations; Joint stock company: The triangle of the owner, Supervisory and Management Board; The Supervisory Board as a key body of control and strategic management; Shareholders Assembly; Open and closed systems of corporate governance: the German and Anglo-American corporate governance system, example from the region; Corporate governance and capital market; Disclosure and transparency of reporting; Evaluating the conditions of introduction and application of corporate governance; Corporate governance in transition countries with special reference to the effects of privatization on the shareholder structure and culture; Corporate social responsibility and corporate governance; Ethics and corporate governance; The convergence of the corporate governance systems and best practices.

Lectures i.e. transfer of systematic knowledge from the literature. Illustrations and exercises. In addition to examples that will be discussed, the classes will involve solving problem tasks that will illustrate and practice specific topics. Discussions of case studies. Preparation and presentation of seminar paper with the mandatory application of the methodology for the preparation of professional papers.

Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Todorović, Z.; Babić, M. (2008). Corporate governance as a factor of the rapid development of the economy. Banja Luka: Atlantik; Lojpur, A.; Lakićević, M. (2009). Corporate governance in the theory and practice of privatization, revised edition. Podgorica: Faculty of Economics; The International Finance Corporation (IFC) (2009). Handbook of corporate governance for companies in Bosnia and Herzegovina; Tipurić, D. (2008). Corporate governance. Zagreb: Sinergija; The International Finance Corporation (IFC) (2009). Manual for the management of family firms (BiH edition).