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Schleifer and Vishny (1997) give a succinct, if rather narrow definition that "corporate governance deals with the way suppliers of finance assure themselves of getting a return on their investment". A broader and more functional definition is given by the OECD (1999).
"Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs...
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