Research Of ABC Corporation Operator's Reward Stimulation Mechanism

Both the modern enterprise theory and the principal-agent theory hold the idea that enterprise is composed by a series of contracts. As a result of the characteristics of information dissymmetry and contract imperfectness, a kind of principal-agent relationship is formed between the enterprise owners and operators, thus bringing about the principal-agent problem. The key to the solution of the enterprise's principal-agent problem lies in the fact that the enterprise owners should stimulate and restrict the operators with the smallest agent cost, aiming at the maximization of respective avails of the owners and the operators. This process is called operator's stimulation mechanism. The mechanism of stimulation and restriction is mainly made up of four stimulation mechanisms: reward mechanism, controlling power mechanism, reputation mechanism and market competition mechanism. Only reward stimulation mechanism is the research object of this dissertation. The dissertation proceeds as follows: Firstly, it briefly elaborates the modern enterprise theory and the principal-agent theory, makes an analysis of the owner and the operator's avails, and proposes the connotation of the stimulation mechanism and the stimulation model to be ABC Corporation operator's theoretical basis of reward stimulation system design; Secondly, on the basis of investigation, this dissertation carries on a reorganization and analysis of ABC Corporation's background situation; Thirdly, by putting forward the MHP model...