Welcome to Encycogov
What is corporate governance?
 About Encycogov - FAQ

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



1st announcement

The search engine and about 5% of the links are temporary out of order
Due to technical problems at an internet service provider the search engine and  about 5% of the links at this site are temporary out of order. The latter only affects Netscape users. Internet Explorer users are unaffected.

Updated and added pages
Added pages:
1) Model: The irrelevance of capital structure in perfect capital markets. 2) Model: Perfect capital markets - Fisher separation theorem.
Updated pages: 1)
Exhibition: Sensitivity - Discounted cash flow framework

New section on positive economics is up and running
Included pages:
1) Exhibition: The covering-law model of scientific theories. 2) Table: Symmetry by three archetypes of scientific theories. 3) Table: Examples of simplifying and realistic assumptions in economics. 4) Table: Examples of explanatory and predictional theory in economics.

The section on transaction cost economics is now ready and running
Included pages:
1) Statistics: The growing importance of transaction cost economics. 2) Exhibition: Decomposing the transaction costs. 3) Exhibition: Production costs vs. transaction costs dynamics. 4) Exhibition: A Darwinistic explanation of economic performance. 5) Table: The utility / motivation concept. 6) Table: Four basic kinds of contracs: Market, bargain, firm, and government.

Updated and added pages
Added pages: 1)
Model: The CAP-model (CAPM). 2)
Models: Principal/agency models - The classic risk / incentive tradeoff. 3) Exhibition: The concepts of risk aversion, risk neutrality and risk loving
Updated pages: 1) Exhibition: The perfect market economy.

New and improved encyclopedia search engine
Now the encyclopedia has got its own search engine (access it by clicking the yellow bottom in the blue border). It is fast and it allows for both simple search on keywords and more sophisticated search. Important: At the search page remember to check 'Search in current category'. If you don't check it you will search all the web pages on Copenhagen business school, not just the content of Encycógov. Nice tip: When you have found the relevant web pages containing your search keywords you may use the find function in your browser's edit menu to locate exactly where the keywords appear on the web page. This is relevant for large pages such as the pages containing the 'Encyclopedia references' (listed under 'Services' in the blue border).

Updated pages and copyright changes
All pages on international corporate governance have been updated so that they load faster and are easier to print. Furthermore, many have requested that the copyright rules allowed for printing the content of this encyclopedia. Consequently the copyright rules have been changed so that you may print one copy of the Contents of the encyclopedia for your own personal, noncommercial use, provided that you maintain all copyright and other notices contained on the Contents.

New pages
New pages added: 1) Exhibition on fundamental value analysis. 2) Table on the concepts of certainty, risk and uncertainty. 3) Exhibition defining essential accounting statistics.  4) Exhibition on sensitivity analysis in fundamental value analysis. 5) Exhibition on the perfect market economy model. 6)
Exhibition on how specialization among experts and organizational structure can be used to increase the quality on complex decisions on corporate fundamentals.-The case of a global rating service.

Those of you who have followed this site since the last announcement knows that quite a lot has happened. The blue menu on the left has been completely rescheduled and a substantial amount of new pages has been added or improved. They are too many to be mentioned here (more than 40 new pages). In the future, however, every new page and every significant upgrade of existing pages will be announced. Also, thanks to James McRitchie for listing this site at the corporate governance site ( http://www.corpgov.net ). It has contributed to the growth of traffic on this encyclopedia. Indeed, this traffic has been absolutely fantastic. It has grown from zero in the beginning of June to more than 20 a day
by the end of July. This compares to an annual rate of more than 7000 visitors! As a result, you can expect much more material and functionality in future versions of this encyclopedia.

Good news. Now this web also support viewing by older browsers such as version 3 and 4 from Netscape and Microsoft.
Still, most of the pages at this web function and look better with Netscape's or Microsoft's browser version 5 or higher. Indeed, version 4 browsers cannot recognize links within figures and version 3 browsers are furthermore unable to display several formatting and graphical elements correctly. To accommodate older browsers the links within figures are reproduced below the figures. Now that the problem with support for older browsers has been solved future efforts will be directed at extending the content of the encyclopedia. 

July 12, 1999. Announcement
As of today this site is officially opened. This encyclopedia site provides information about corporate governance which
is a field in economics that investigates how corporations can be made more efficient by the use of institutional structures such as contracts, organizational designs and legislation. This is often limited to the question of shareholder value i.e. how the corporate owners can motivate or secure that the corporate managers will deliver a competitive rate of return. So far the encyclopedia is solely produced and expanded by Henrik Mathiesen who is a Ph.D. candidate in Denmark at Copenhagen Business School, The Department of International Economics and Management. For the time being the purpose of the web site is largely experimental. 

May 29, 1999. Announcement 
This encyclopedia is still under initial construction but I expect to post a first version in about one month.

Previous announcements


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