Introduction to Corporate Governance
Definition Corporate Governance by Shleifer and Vishny (1997) - answer ‘Corporate
Governance deals with the ways in which suppliers of finance to corporations assure
themselves of getting return on their investment'.
Definition Corporate Governance by OECD (1999) - answerCorporate Governance is 'a
set of relationships between a company's board, its shareholders and other
stakeholders. It also provides the structure through which the objectives of the company
are set.'
Important features of Corporate Governance (Mallin) - answer1. it helps ensure that an
adequate system of of control operates within a company
2. it prevents any single individual having too powerful an influence
3. it's concerned with relationship management, board of directors, shareholders and
stakeholders
4. it ensures managing in best interest of stake- and shareholders
5. it encourages both transparency and accountability, which investors are looking for
Definition Corporate Governance by Shleifer and Vishny (1997) - answer ‘Corporate
Governance deals with the ways in which suppliers of finance to corporations assure
themselves of getting return on their investment'.
Definition Corporate Governance by OECD (1999) - answerCorporate Governance is 'a
set of relationships between a company's board, its shareholders and other
stakeholders. It also provides the structure through which the objectives of the company
are set.'
Important features of Corporate Governance (Mallin) - answer1. it helps ensure that an
adequate system of of control operates within a company
2. it prevents any single individual having too powerful an influence
3. it's concerned with relationship management, board of directors, shareholders and
stakeholders
4. it ensures managing in best interest of stake- and shareholders
5. it encourages both transparency and accountability, which investors are looking for
