In lecture 1, we discussed agency problems between shareholders and managers and a couple of methods to control / reduce the agency costs.

Essay Questions

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QUESTION – Essay Questions (50 marks)

In lecture 1, we discussed agency problems between shareholders and managers and a couple of methods to control / reduce the agency costs. Choose two academic papers from either Journal of Corporate Finance or Journal of Banking and Finance (available electronically through the library’s website) which discussed how corporate governance mechanism / practice helps to reduce the agency problem and therefore, could potentially improve firm performance.

complete the following tasks for Question

1. Problem Identification (10 marks):
   · In your own words, briefly discuss the agency conflict between shareholders and managers (Word limit: 200 words).

· In your own words, briefly describe the control mechanism examined in each paper. (Word limit: 150 words for each paper)

1. Scholarly Skills (20 marks):
   For each paper, write a brief summary of data, methodology and findings.

(Word limit: Each summary should be a maximum 2 pages).
· Each paper should be published after year 2000.

· Each paper should be from either Journal of Corporate Finance or Journal of Banking and Finance

· You are welcome to take a look at the “Paper 2”, provided on Blackboard as a guidance. You should not use the “Paper 2” as one of the papers for doing your assignment.

1. Structure and Referencing (20 marks):
   · Marks will be allocated for correct grammar and clear and logical writing. Word limits are strictly enforced. Contents exceed the word limits will not be marked.

· You must format your reference list in line with Harvard Referencing Style. Note that your reference list will only include two papers you reviewed, not all the references within the papers. Your reference should include in-text reference and bibliography.

Hints:

· “Paper 1” on Blackboard provides a good starting point to begin your search.

· It would be easier to choose a paper that focuses on examine one or two corporate governance mechanism. However, this is not a requirement.

GUIDELINES: ASSIGNMENT LAYOUT AND PRESENTATION

1. Your document should be typed in Times New Roman font, size 12.
2. The assignment should be 1.5 spaced and have margins of 2.54 cm.
3. For calculation questions, you need to show all your workings (including timeline if appropriate), calculations need to be typed in for a neat presentation, scans/handwriting is not accepted and will result in a loss of marks.
4. For questions with word limit constraints, you must include the word count at the end of your answer (e.g. (258 words)). Exceeding the word limit or not specifying the word count will result in a loss of marks.
5. The overall layout of the assignment should be easy to follow.