ECON4245 – Corporate Governance

Schedule, syllabus and examination date

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

If you are not already enrolled as a student at UiO, please see our information about admission requirements and procedures.

Apply for guest student status if you are admitted to another Master's programme, or have completed a master in Economics at UiO or another Norwegian University.


Formal prerequisite knowledge

  • Bachelor's degree in Economics, or equivalent.

Overlapping courses

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


Lectures and seminars.


A 3-hour written school exam.

Previous exams

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

It is recommended to request an explanation of your grade before you decide to appeal.



The deadline to request an explanation is one week after the grade is published. For oral and practical examinations, the deadline is immediately after you have received your grade.

The explanation should normally be given within two weeks after you have asked for it. The examiner decides whether the explanation is to be given in writing or verbally.

Ask for an explanation about the grade in this course.

Ask for an explanation about the grade for postponed exam in this course

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