STAKEHOLDER-AGENCY THEORY

Taking agency theory and stakeholder theory as points of departure, th is article proposes a paradigm that helps explain the following: (1) c ertain aspects of a firm's strategic behaviour; (2) the structure of m anagement-stakeholder contracts; (3) the form taken by the institution al structures that monitor and enforce contracts between managers and other stakeholders; and (4) the evolutionary process that shapes both management-stakeholder contracts and the institutional structures that police those contracts.