Mangement Control

Learning goals

  • Students will learn why size in various dimensions matters for firms
  • Understand the basic mechanisms for management control in large companies and how the companies could be organized to increase value creation
  • Understand the consequences of alternative incentive systems and be able to select appropriate ones for a particular company
  • Be able to use different performance measures, with the weighted average cost of capital as base line, and understand the limitations of the measures
  • Master various methods for planning and control, such as traditional budgeting, rolling forecasts and balanced scorecards
  • Understand the motivation for transfer pricing and the consequences of different schemes
  • Understand how the different management tools may work together (or against each other) in a company

Literature:

The chapters are based on

  • BSZ: Brickley, J.A., Smith, C.W. and J.L. Zimmerman (2009), Managerial Economics and Organizational Architecture, McGraw-Hill Irwin
  • BMA: Brealey, R.A., C. Myers and F. Allen (2014), Principles of Corporate Finance, McGraw-Hill Education
  • JB: Bergstrand, J. (2009), Accounting for Management Control, Studentlitteratur
  • Demski, J. (1997), Managerial Use of Accounting Information, Springer, Ch. 18

Course contents

Information

Lectures:
Dr. Steffen Juranek

Certification and Credits:
One group assignment and a final exam.