ECON4245 – Corporate Governance

Schedule, syllabus and examination date

Choose semester

Course content

The course focuses on the relationship between the firm and its management on the one hand, and its sources of finances on the other hand (banks, share holders, etc.).

Emphasis is put on incentives, such as: incentives for the management to perform in the interest of owners, incentives for creditors and owners to monitor the firm’s management, and incentives for owners to fulfil obligations to creditors.

These and related issues are studied by using models from contract theory, in particular moral-hazard models, but also models of asymmetric information and models of incomplete contracts.

Learning outcome


You should know

  • about a firm’s limited capacity to get credit due to moral hazard
  • how this limited borrowing capacity affects a firm’s liquidity management
  • how asymmetric information makes outside finance expensive
  • how activities by outside investors affect a firm’s ability to obtain credit
  • how allocation of control rights affects corporate finance


You should be able to

  • formulate problems related to corporate governance and corporate finance and to use contract theoretic models to analyse such problems
  • understand how information problems make it difficult to align the interests of the various parties involved – owners, creditors, and management – and how these difficulties affect the way the firm is financed


You should

  •  be able to read and understand project reports and journal articles that make use of the concepts and methods that are introduced in the course
  •  be able to make use of the course content in your own academic work, for example in analyses that are part of the master’s thesis



Students admitted to study programmes at UiO must each semester register which courses and exams they wish to sign up for in Studentweb.

Students not admitted to the Master’s programme in Economics or the Master’s programme in Economic Theory and Econometrics (Samfunnsøkonomisk analyse), can apply for admission to one of our study programmes, or apply for guest student status.


Formal prerequisite knowledge

You must fulfill one of these prerequisites:

Overlapping courses

  • 10 credits overlap with ECON531 Foretaksøkonomi
  • 10 credits overlap with SØK531 Foretaksøkonomi, 3. avd. samfunnsøkonomi


Lectures and seminars.


Ordinarily, this course has a 3-hour written school exam.

For 2020 the following applies for the exam in ECON4245:

The examination will be a 5-hour home examination in Inspera. The home exam will be an open-book exam, where all written and printed resources as well as technical support is allowed. All submitted papers will be checked for plagiarism. You can find the date and time for the exam on the semester page.


Previous exams

Exam papers with comments from examiner

Digital examination

The written examination is conducted in the digital examination system Inspera. You will need to familiarize yourself with the digital examination arrangements in Inspera.

Read more about written examinations using Inspera.

Examination support material

Students may use dictionaries at this exam. Dictionaries must be handed in before the examination. Please read regulations for dictionaries permitted at the examination.

Language of examination

The examination text is given in English.You may submit your response in Norwegian, Swedish, Danish or English.

Grading scale

Grades are awarded on a scale from A to F, where A is the best grade and F is a fail. Read more about the grading system.

Explanations and appeals

Resit an examination

If you are sick or have another valid reason for not attending the regular exam, we offer a postponed exam later in the same semester.

See also our information about resitting an exam.

Withdrawal from an examination

It is possible to take the exam up to 3 times. If you withdraw from the exam after the deadline or during the exam, this will be counted as an examination attempt.

Special examination arrangements

Application form, deadline and requirements for special examination arrangements.

Facts about this course






Every other autumn starting 2016


Every other autumn starting 2016

Teaching language