Session 3 (Undergraduate): Corporate Governance

In this class, we started to look at the what can wrong with the Utopian world that allows us to focus on stock price maximization. In particular, we examined how the mechanisms that shareholders use to keep managers in line, the annual meeting and the board of directors, are flawed. We closed with the general question of looking at how much power stockholders have to create change in corporations. Slides: ~adamodar/podcasts/cfUGspr16/ Post class test: