Corporate Governance_OS 2014-2015 1 of 6

SYLLABUS
[ACCT11306] CORPORATE GOVERNANCE
Odd Semester 2014/2015
Credit: 3
Prerequisite: None


Lecturers:

Cut Saskia Rachman, M.Ak. [coordinator]
Department of Accounting FEUI
kikiamitra@yahoo.com
08161136353 (mobile)
(021)7272425 ext.400 (office)






























UNIVERSITAS INDONESIA
FACULTY OF ECONOMICS AND BUSINESS
International Undergraduate Program
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SUBJECT DESCRIPTION

This course aims to provide the definition of corporate governance, the argument of corporate
governance, principles and implementations of corporate governance,as well as the
implementation of corporate governance in Indonesia. The discussion will mainly revolve
around the role of accountants in achieving good corporate governance.



SUBJECT OBJECTIVES

Upon completion of the course, the learning participants should (cognitive skill):
Understand the Corporate Governance (CG) concept and the need of a Good CG (GCG)
application
Understand the benefits of GCG application in companies and economy
Understand the GCG principles
Understand the importance of ethical business behavior in applying GCG
Understand the roles of accountants in applying GCG
Understand CG scorecards development in companies
Analyze CG practices in Indonesia

In addition, students will improve:
technical skills and analytical skills


Soft Skills to be Developed
Intensity Level
Low Moderate High
Evaluation of ideas, views, and evidence
Synthesis of ideas, views, and evidence
Strategic thinking
Critical thinking
Self motivation and management
Problem solving skills
Collaborative learning and teamwork
Negotiation and bargaining
Written communication
Oral communication
Case analysis



SUBJECT MATERIALS

Kim, K.A., Nofsinger, J.R., & Mohr, D.J., 2010, Corporate Governance, 3
rd
Edition,
Pearson (KNM)
Wallace, P & Zinkin, J., 2005, Mastering Business in Asia Corporate Governance,
John Wiley & Sons (WZ)
OECD, 2004, OECD Principles.
KNKG, 2006, General Guidance for Good Corporate Governance Indonesia.
KNKG, 2010, General Guidance for Good Public Governance.
Regulations related to CG: UU Perseroan Terbatas RI, UU PT, SK Meneg BUMN 103 &
117, and some relevant Bapepam-LK, BEI, and BI regulations.



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ASSESSMENT

Final grade consists of
a. Participation and discussion 5 %
b. Individual paper 10 %
c. Group paper and weekly assignment 10 %
d. Presentation 5 %
e. Mid-term exam 35 %
f. Final exam 35 %

100%


CLASSROOM ORGANIZATION

Group presentation + 1.5 hours.
Questions and Answers + 30 minutes.
Quizzes will be conducted randomly.
Examination:
Mid-term examination will be closed book. The examination evaluates students
understanding of subjects delivered between 1st session and 7th session.
Final examination will be closed book. The examination concerns the subjects delivered
between 8th session and 14th session.


Teaching Methods consist of:

Lecture yes
Class discussion yes
Individual project & paper yes
Group project & paper yes
Presentation yes
Case analysis yes
Tutorial no
In-class experience exercise no
Collaborative learning no



CLASS ASSIGNMENT

Group Assignment
Every group consists of no more than 5 students, and one group pointed has to submit a paper
(a maximum of 10 pages) and present the topic and relevant case, starting from session 2 until
13.
The other groups that do not present at that day, have to submit a summary of related topic (1-
2 pages).

Individual Assignment
Each student makes a maximum of 15 page-paper (excluding abstract and attachment),
discussing about one issue related to governance in Indonesia or foreign countries. This
individual paper must be submitted at the end of the course (session 14).




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LECTURER POLICY

Assignment should be handed in no later than due date. Any late work will be penalized
(marked for zero).


CLASS TIMETABLE
Session Topic Resources
1 CG Concept, CG Needs, and
CG Benefits
KNM: Ch 1
WZ: Ch 1
UU PT, SK Meneg BUMN, Peraturan
Bapepam-LK, BEI, dan BI
1

Roberto Newell and Gregory Wilson, 2002.
A premium for good governance. Mc Kinsey
Quarterly
2 CG Principles OECD Principles
NCCG, Code for Good Corporate
Governance
WZ: Ch 2 & 9
3 CG in the World, Asia and
Indonesia
Dominic Barton, Paul Coombes, and Simon
Chiu-Yin Wong, 2004. Asias Governance
Challenge. Mc Kinsey Quarterly
Claessens & Fan, Corporate Governance in
Asia: A Survey
4 Ownership Structure OECD Principle 2
UU BUMN
Morck & Yeung 2004, Special Issues
Relating to Corporate Governance & Family
Control
Case 1: Bank Century
5 Protection for Shareholders
Rights

OECD Principle 3
La Porta et al. 2000. Investor Protection and
Corporate Governance. Journal of Financial
Economics 58, 3-27.
Claeseens et al. 1999, On expropriation of
minority shareholders: evidence from East
Asia, www.ssrn.com
Case 2: Aqua Danone
6 The Responsibility of
Commissioners and
Directors
Independent Commissioners

OECD Principle 6
KNM: Ch 4
IICG, Membangun dewan komisaris yang
efektif, Juni 2000.
WZ: Ch. 3, 4, 5
Case 3: SKK - Migas
7 Audit Committee and Other
committees: Roles,
Responsibility, Composition,
and Effectiveness
WZ: Ch.6
NCCG, Indonesian guidelines for
establishing effective audit committees.
Case 4: PT Kereta Api Indonesia
Mid-term examination
8 The Role of Internal Auditing
and Risk Management
IIA, The Role of Internal Auditing in
Resourcing The Internal Audit Activity
IIA, The Role of Internal Auditing in
Enterprise-wide Risk Management
KPMG, Internal Audits Role in Corporate
Governance
Case 5: Newmont Environment

1
Used for every session when relevant
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9 Corporate Social
Responsibility
The Roles of Institutional
Investor, Foreign Investors,
and Creditors.

OECD Principle 4
KNM: Ch 6, 7, 11
GRI, Sustainability Reporting
McKinsey Global Survey Results, 2008.
Valuing corporate social responsibility.
McKinsey Quarterly.
Sustainability Report PT Antam Tbk., PT
Timah Tbk.
Case 6: PT. Kaltim Prima Coal
10 Disclosure and Transparency


OECD Principle 5
Utama, CG, Disclosure, and Its Evidence in
Indonesia, Manajemen Usahawan, Maret &
April 2003.
EBAR Vol. 1, Transparansi dan
Akuntabilitas, November 2005.
Case 7: PT Perusahaan Gas Negara Tbk
11 The Quality of Financial
Reporting and The Role of
External Auditors in CG
Penman, The quality of financial statements:
Perspectives from the recent stock market
bubble, Accounting Horizons (Supplement),
2003, 77-96.
Imhoff, Accounting quality, auditing, and
corporate governance, Accounting Horizons,
Supplement 2003, 117-128.
Peraturan Bapepam LK
Case 8: PT Telkom Tbk
12 Corruption Issues in
Indonesia
Good Public Governance
World Bank Institute, New empirical frontiers
in fighting corruption and improving
governance a few selected issues,
February 2001.
Transparency International, Corruption
Perception Index 2010.
Undang Undang KPK
KNKG, Pedoman Umum Good Public
Governance
Case 9: Bakrie VS Rotschild
13 Business Ethics and
Professional Ethics
KNKG: Ch III
Copeland 2005, Ethics as an Imperative.
Accounting Horizons.
Public Accountant Code of Conduct
Case 10: Enron & WorldCom
14 Contemporary Issue and CG
Research
ROSC CG Indonesia 2010
IICD Scorecard
Gillan, S.L. 2006. Recent Developments in
Corporate Governance: An Overview
Final Examination












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ATTENDANCE

Referring to the faculty regulation, the Program requires students to fulfill a minimum
attendance of 80% to be eligible for the final exam. Thus, students should attend a minimum 8
out of 10 lecturing sessions and 6 out of 8 tutorial sessions.


EXAMINATION REGULATION

1. Students may use non-programmable calculators only.
2. Students may use the dictionary provided by the program only. Students should notify
their exam supervisor(s) if they need it.
3. Students should not conduct any act of cheating during the examination. Students will
automatically be graded E for the subject if they are caught cheating during the
examination of the respective subject. In addition, students will be graded E for
all other subjects taken during the particular semester, whose examinations
have taken place prior to the cheated examination.
4. Deferred examination is only applicable if it is requested in written by the Program.


ORIGINALITY

Students should maintain originality and respect intellectual property rights. Therefore, students
should avoid conducting any act of plagiarism when doing written assignments (if any), which
may take a form of short individual / group paper and / or summary.

The followings are acts of plagiarism:
Copying paragraphs, sentences, a single sentence, or even a significant part of a
sentence directly without enclosing them in quotation marks and appropriately
footnoted;
Using and / or developing others ideas found in printed materials or film elsewhere
without explicitly referencing them to the respective author or the source of the idea.

Plagiarism is a serious infringement of intellectual property rights. Any assignment that
contains presumed plagiarism will be marked 0 (zero).

Since students are required to write group papers, students should sign a Statement of
Authorship and attach it to their papers before paper submission. The form of Statement of
Authorship is available at the Resource Center of the Program. Lecturer(s) and / or tutor(s) will
refuse to mark any paper that has no signed Statement of Authorship attached.

In addition, students should ask for cover sheet from the Resource Center of the Program for
any assignment submitted.