Model Establishment of Multi-level Principal Agent based on Corporate Governance of High-tech
Ye Liu, Kai Li, Qin Lina
Abstract
Ye Liu, Kai Li, Qin Lina
Abstract
This paper studies the difference of multi-level principal agent model between the company of high-tech and traditional company from two aspects. Firstly, this paper establishes multi-level principal agent target function among stockholder, the board of director and manager of the company of high-tech based on common company's function; Secondly, it also establishes multi-level principal agent model between manager and employee of the company of high-tech based on common companys function. According to comparison, the difference between the company of high-tech and traditional one results from company's special characters. The results show that the company of high-tech should set up special human resource power mechanism other than common one.
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This paper studies the difference of multi-level principal agent model between the company of high-tech and traditional company from two aspects. Firstly, this paper establishes multi-level principal agent target function among stockholder, the board of director and manager of the company of high-tech based on common company's function; Secondly, it also establishes multi-level principal agent model between manager and employee of the company of high-tech based on common companys function. According to comparison, the difference between the company of high-tech and traditional one results from company's special characters. The results show that the company of high-tech should set up special human resource power mechanism other than common one.
Key concepts: High tech, Shareholder, Principal (computer security), Corporate governance, Business, Function (biology), Principal–agent problem, Listed company