FACULTY OF ARTS AND SOCIAL SCIENCES

SCHOOL OF ECONOMICS (SOE)

Course Specifications
Corporate Governance
BSEF-310

Fall-2022

http://www.bzu.edu.pk/
 Course Specifications
Basic Information
Course Title: Corporate Governance

Course Code: BSEF-310

Course credits/week: Theory: 03 Lab: Nil Total: 03

Program(s) on which the course is given: BSEF-6th Semester(ECONOMICS & FINANCE)

Is the course major or minor element of the program: Major: Minor:

Department offering the program: SCHOOL OF ECONOMICS

Department offering the course: SCHOOL OF ECONOMICS

Academic year/level: 4

Revision : 1st

Last revised on (date): None

Overall Aims of the Course

COURSE DESCRIPTION:
Corporate governance is concerned with governing the corporate entities. It provides a
mechanism used to control and direct the affairs of a corporate body in order to serve and
protect the individual and collective interests of all its stakeholders. This course is designed
to give an introduction to the field of corporate governance. It will introduce the students with
governance rules and regulations.

LEARNING OBJECTIVES:
At the end of this course, the students should be able to:
1. Recognize the importance of governance and learn what good directors need to know to
provide good governance.
2. Be effective as directors or advisors to boards by emphasizing many of the ideas and
concepts taught.
3 Understand and implement best practices on corporate governance.
Course Content

Lecture Contents Suggested Reading

no.

1 Introduction to corporate governance. What is it all about? Types and Ch.1, Safdar A. Butt
hierarchy and key players of companies. Stakeholders.

2 Approaches to corporate governance, Relationship between Ch:1, Safdar A. Butt

management and governance.

3 A brief history of corporate governance, its evolution, reports on Ch.2, Safdar A. Butt
corporate governance.

4 The corporate governance problem, Theories of corporate governance. Ch.2..

A.C Fernando

5 The conflict between managers and shareholders, Agency Theory: The Ch.2..
implications of the conflict; The Principal - Principal Conflict. A.C Fernando

6 Sarbanes-Oxley Act 2002. Ch.2..

A.C Fernando

7 Corporate governance models, Anglo-US, Japanese and German Models. Ch.2..

A.C Fernando

8 The shareholders, Their types, characteristics Ch.3, Safdar A. Butt

9 Role of institutional shareholders in corporate governance Related Ch.3, Safdar A. Butt

Article.

10 The board of directors, its types, functions, role of chairman and chief Ch.4, Safdar A. Butt
executive officer, types of boards. Cadbury Code for the board of
directors.

11 Article on dual role of chairman and CEO. Reading material

will be provided

12 Committees of a board. The audit committee, nomination and Ch.5; Safdar A.Butt.
remuneration committees.

13 Role of audit committee and its situation in Pakistan. Related article. Ch.5; Safdar A.Butt.

14 The directors, importance of individual directors, types of directors, role Ch.6, Safdar A.Butt.
 of independent directors.

15 Insider trading. Directors' dealing in company's shares. Ch.6, Safdar A.Butt.

16 Enron case of governance failure, its consequences and Article will be

recommendations provided

Mid-term Exam

17 WorldCom case of governance failure, its consequences and Article will be

recommendations. provided

18 Financial reporting, types of financial reports, health of financial Ch:7, Safdar A. Butt
statements.

19 Role of audit committee, creative accounting, role of external auditor, its Ch:7, Safdar A. Butt
independence.

20 Risk management, Risk aversion, Risk management process. Ch.8, Safdar A. Butt

21 Risk transfer techniques: hedging, options, insurance and diversification. Ch.8, Safdar A. Butt

22 Internal control, its objective and tools and monitoring. Ch.9, Safdar A. Butt

23 Whistle blowing, setting up a whistle blowing system. Ch.9, Safdar A. Butt

24 Business ethics, evolution of corporate ethics, unethical behavior at Ch.10, Safdar

corporate level. A.Butt

25 Corporate social responsibility, compliance with law, investment in Ch.11, Safdar A.

community, concern for the environment. Butt

26 External influence on a company's governance, role of government and Ch.12, Safdar A.

SECP. Governance issues of Pakistan: Related article. Butt

27 Project Presentations.

28 Project Presentations.

29 Project Presentations.

30 Project Presentations.
 Final-term Exam

Required Learning Resources

TEXT/REFERENCE BOOKS:
Corporate Governance: An introductory text for Pakistan by Safdar A. Butt, latest Edition
Corporate Governance by Christine A. Mallin, Oxford University Press
Corporate Governance; Principles, Policies and Practices By A.C Fernando
Corporate Governance by Kesho Prasad, Eastern Economy Edition
Corporate Governance Matters: A Closer Look At Organizational Choices and Their
Consequences by David Larcker and Brain Tayan, Pearson-Prentice-Hall (2011)
Supplementary material in the form of articles, cases and books will be provided in class.

Assignments Schedule & Quiz

No. Weeks Assigned Week Due Quiz Tests

1. 3 4 Three surprise quiz tests conducted during the semester,

best of two will be counted for final grade. There
2. 6 7 there will be no makeup of these tests.
3. 11 12

4. 14 15

Examination/Weighting of Assessments & Quizzes

Quizzes + Assignments + Class Participation + 20%

Projects

Mid-semester examination 30%

End-semester examination 50%

Grading Criteria

Letter Grade Percentage Marks

A 80-100 EXCELLENT

B 65-79.99 GOOD

C 50-64.99 SATISFACTORY

D 40-49.99 PASS

Contact Details:

Dr. Rashid Ahmad Assistant Professor

School of Economics (SOE),
Faculty of Social Sciences,
BZ University, Multan, Pakistan.

Office Hours Monday to Friday 08:00 AM to 04:00 PM

Phone(office) +92-301-7413898 E-Mail: rashidbzu@gmail.com

Course Specifications Developed By: Reviewed By (Director SOE):

Dr.Rashid Ahmad Dr. Muhammad Zahir Afridi

Date: Date: