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. This unit is called the Board of Directors. Modern corporate governance theory is based on the seminal study of Jensen and Meckling (1976) that forms the foundation of the agency theory. In practice, two fundamental corporate governance models can be

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]. Budapest : Aula . Kim , J. – Mahoney , J. T. ( 2005 ): Property Rights Theory, Transaction Costs Theory, and Agency Theory: An Organizational Economics Approach to Strategic

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