Middlebury Institute of International Studies at Monterey

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Corporate Govrnance

“Shleifer and Vishny (1997) state: “Corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment. How do the suppliers of finance get managers to return some the profits to them? How do they make sure that managers do not steal the capital they supply or invest it in bad projects?” (Page 737)

Many other scholars, however, take a much broader view of corporate governance. Monks and Minow (2008) state that

« In essence, corporate governance is the structure that is intended to make sure that the right questions get asked and that checks and balances are in place to make sure that the answers reflect what is best for the creation of long-term, sustainable value. When that structure gets subverted, it becomes too easy to succumb to the temptation to engage in self-dealing.” (Monks & Minow (2008), pg. 3).

“Good corporate governance requires a complex system of checks and balances. One might say that it takes a village to make it work. In the last decade, we have seen a perfect storm of failures, negligence, and corruption in every single category of principal and gatekeeper: managers, directors, shareholders, security analysts, lawyers, accountants, compensation consultants, investment bankers, journalists, and politicians.” (Monks and Minow (2008), pg. 4).

This course will combine theoretical perspectives on corporate governance with practical applications through case studies.”

International Management
International Management
Intl Policy & Management
Requirements Fulfilled:


Spring 2016 - MIIS, MIIS Second Half of Term

MBAG8619A-S16 Lecture (Dow)