This paper argues that Australian corporations are shifting away from traditional business metrics towards stakeholder values, allowing personal or political agendas to take precedence over profitability. It calls for greater accountability in corporate governance and a reconsideration of the role of management in addressing social issues.

In this paper I rectify and extend the market governance model of Holmstrom and Tirole (1993) to develop and test a number of hypotheses concerning board structure and incentives. The forced departure of "non-independent" directors from the boards of companies due to regulatory-induced pressure enables the testing of this new theory of corporate governance based...