Model Designed For Selecting Top Executives Of An Enterprise Based On Principal-Agent Theory And Its Demonstration

Top executives play a decisive role in the running of a modern enterprise. How to selecttop executives for an enterprise has been a focus discussion topic in the theory field for a longtime, but many people ingnored to research about talents selection to stimulate withprincipal-agent theory, based on the conclusion from former researchers, it takes asignificative design to select top executives. The main research we do as following:(1) To define the concept about top executives selection and point out some problem withprincipal-agent theory in the course of selecting them. It discusses the factor aboutstimulating and decipline on selecting top executives with manpower capital theory andputs forword the importance of constructing a rational and effective mechanism to selecttop exectives with stimulation(2) To discuss the techniques on top executives selection and compare two old methods,pointes out that selecting top executives and top technique talents inclines to secondmethod because it based on the model to select top executives with the principal-agenttheory.(3) It establishes one model based on principal-agent theory to select top executives, whichwill make the lower ability employee to retreat from enterprise consciously.The thesisalso gives a parameter example in a direct way to explain the model.(4) It discusses the variable connection in the model of selecting top executives withprincipal-agent theory. It studies the variable connection in the model with the connectionof risk wage coefficient and its performance about general manager in Guangzhou threestar rank hotel, verifies the correction of the model in more effective way withmathematical statistics theory.