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Who Will Guard the Guardians?: International Corporate Governance
This technical note explains what corporate governance is and why it is important. It examines how corporate governance is practised within developed and developing economies by identifying four distinct models of capitalism in which corporate governance is embedded: liberal market economies, coordinated market economies, family-led market economies and state-led market economies. Depending on the model of capitalism in which they operate, governance actors — owners, managers, directors and employees — engage distinct governance practices. The note concludes with a discussion of the corporate governance challenges facing multinational firms.