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What is corporate governance?
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Key topics
 The big picture
 Stock price formation
 Fundamental value analysis
International corp. governance

Incentive mechanisms
 Decision system
Performance monitoring
 Incentive based compensation
 Bankruptcy system
 Ownership structure
 Creditor structure
 Capital structure
 Market for corporate control
Labor market competition
Product market competition

Related topics
Transaction cost economics
 Positive economics



Product market competition

Introduction: There are two kinds of product market competition that are relevant in corporate governance. 1) Competition in the firm's product markets, and 2) competition in the product markets of the firm’s owners if they are firms as well. For instance the product markets of an institutional investor. Product market competition is of major importance in corporate governance because it affects the incentives of managers and thereby the economic efficiency of the companies they manage. A classic reference on product market competition is Hart [1983].



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