The program aims to integrate knowledge from different courses and business disciplines, as value creation requires simultaneous prioritization across all areas of business. A good governance structure will have implications for all aspects of management. As a result, this course will draw upon several business disciplines in addition to finance, though the focus will be on the financial aspects and perspective of corporate governance.
Poor corporate governance results in management focused on narrowly-defined, short-term objectives to the detriment of the long-term well-being (i.e., value creation) of the organization.
Good corporate governance ensures management maintain an orientation toward value creation, meaning a broad perspective on the myriad elements of performance which drive value and a long-term focus to ensure proper management of the tradeoff between near-term resource allocations and future resource allocations.
While many talks about the importance of long-term focus and sustainability, we will discuss these concepts using the rigor of the principles of finance which translate fuzzy language into more concrete implications and measurements.