The course (module II) aims at developing skills and competences in identifying, analysing and managing/solving the conflicts of interest in financial sector and in the governance of a firm. Specifically, leaving from the recent corporate scandals, we will analyse a definition pattern of interest conflict typologies, the reasons and conflict implications of agency relationships “principal-agent” and “principal-principal”, the conflicts in financial sector and in the gate-keepers infrastructure; therefore, the respective causes and tools of preventing/solving will be analysed and discussed. Finally, the worst practices in valuation will be analysed, linking them with conflicts that could be involved in IPOs (mainly underpricing) and in M&As and be exploited in valuation practices.
Curriculum
scheda docente
materiale didattico
2. The conflicts of interest in the governance of a firm
a) What can we learn from corporate scandals ?
b) Typologies
c) Tools of analysis, preventing and monitoring
• Market mechanisms
• The financial reporting
• Internal governance mechanisms
• I gate-keepers
3. Compliance effective or simply formal ? Rethorical strategies in explaining the non-compliance
4. The conflicts of interest in financial industry
a) Typologies and peculiarities in financial industry
b) The evolution of law framework
c) Tools of analysis, preventing and monitoring
4. Problems/pitfalls in assessing securities of issuers
a) Conflicts of interest and assessment of a company equity
b) Worst practices in firm valuation
Shrives P.J., Brennan N.M., 2017, Explanations for corporate governance non-compliance: A rhetorical analysis, Critical Perspectives on Accounting, 49, pp. 31-56in addition, slides, cases, examples and various materials/documents available on the course website (Moodle platform).
Programma
1. The conflict of interest: definition, typologies, trends (the new conflicts in digital age)2. The conflicts of interest in the governance of a firm
a) What can we learn from corporate scandals ?
b) Typologies
c) Tools of analysis, preventing and monitoring
• Market mechanisms
• The financial reporting
• Internal governance mechanisms
• I gate-keepers
3. Compliance effective or simply formal ? Rethorical strategies in explaining the non-compliance
4. The conflicts of interest in financial industry
a) Typologies and peculiarities in financial industry
b) The evolution of law framework
c) Tools of analysis, preventing and monitoring
4. Problems/pitfalls in assessing securities of issuers
a) Conflicts of interest and assessment of a company equity
b) Worst practices in firm valuation
Testi Adottati
Balestreri A., Venanzi D., 2021, Conflitti di interessi e finanza. Come individuarli e prevenirli, MacGraw-HillShrives P.J., Brennan N.M., 2017, Explanations for corporate governance non-compliance: A rhetorical analysis, Critical Perspectives on Accounting, 49, pp. 31-56in addition, slides, cases, examples and various materials/documents available on the course website (Moodle platform).
Modalità Valutazione
For all students (attending on not the lectures) the final exam of the second part of the course includes: 1. Project Work (individually or in group) upon the rethorical strategies of explaining the non-compliance on 3 Italian listed companies (analysis of CG relation, identification of areas of non-compliance and relative categorization of explaining strategies adopted: see PW assigment on Moodle platform, in Materials section) 2. oral exam (non-attending students will present the PW results in addition)
scheda docente
materiale didattico
2. The conflicts of interest in the governance of a firm
a) What can we learn from corporate scandals ?
b) Typologies
c) Tools of analysis, preventing and monitoring
• Market mechanisms
• The financial reporting
• Internal governance mechanisms
• I gate-keepers
3. Compliance effective or simply formal ? Rethorical strategies in explaining the non-compliance
4. The conflicts of interest in financial industry
a) Typologies and peculiarities in financial industry
b) The evolution of law framework
c) Tools of analysis, preventing and monitoring
4. Problems/pitfalls in assessing securities of issuers
a) Conflicts of interest and assessment of a company equity
b) Worst practices in firm valuation
Shrives P.J., Brennan N.M., 2017, Explanations for corporate governance non-compliance: A rhetorical analysis, Critical Perspectives on Accounting, 49, pp. 31-56in addition, slides, cases, examples and various materials/documents available on the course website (Moodle platform).
Programma
1. The conflict of interest: definition, typologies, trends (the new conflicts in digital age)2. The conflicts of interest in the governance of a firm
a) What can we learn from corporate scandals ?
b) Typologies
c) Tools of analysis, preventing and monitoring
• Market mechanisms
• The financial reporting
• Internal governance mechanisms
• I gate-keepers
3. Compliance effective or simply formal ? Rethorical strategies in explaining the non-compliance
4. The conflicts of interest in financial industry
a) Typologies and peculiarities in financial industry
b) The evolution of law framework
c) Tools of analysis, preventing and monitoring
4. Problems/pitfalls in assessing securities of issuers
a) Conflicts of interest and assessment of a company equity
b) Worst practices in firm valuation
Testi Adottati
Balestreri A., Venanzi D., 2021, Conflitti di interessi e finanza. Come individuarli e prevenirli, MacGraw-HillShrives P.J., Brennan N.M., 2017, Explanations for corporate governance non-compliance: A rhetorical analysis, Critical Perspectives on Accounting, 49, pp. 31-56in addition, slides, cases, examples and various materials/documents available on the course website (Moodle platform).
Modalità Valutazione
For all students (attending on not the lectures) the final exam of the second part of the course includes: 1. Project Work (individually or in group) upon the rethorical strategies of explaining the non-compliance on 3 Italian listed companies (analysis of CG relation, identification of areas of non-compliance and relative categorization of explaining strategies adopted: see PW assigment on Moodle platform, in Materials section) 2. oral exam (non-attending students will present the PW results in addition)