Research On The Factors Inducing Moral Hazard In Engineering Technology Transaction

Transaction of engineering technology is of great significance for nation,industry and enterprise.Concerning serious information asymmetry,high uncertainty,large number of participants,huge amounts capital involved in such transaction,moral hazard could easily be triggered.As the ?Going out? and ?The Belt and Road? strategy not only encourage Chinese enterprise to absorb technology from developed country,but also create chance for Chinese enterprise to output technology to less developed country via investment.Therefore,to ensure effective transaction,preventing moral hazard from happening is extremely important.Moral hazard has become a prioritized issue due to its wide scope and serious impact.As the current study largely focuses on single factor,there is no systematic identification of inducing factor of moral hazard in technology transaction.Moreover,there is a lack of consideration regarding particularities of engineering technology transaction.To achieve this goal,24 factors were identified through a comprehensive literature review and interview.A questionnaire-based survey is then conducted to obtain opinions from relevant professionals.The results of descriptive statistics show that 20 factors were significantly important,and that "unreasonable incentives","ineffective supervision ","information asymmetry ","loose legal punishment","high cost to identify default" are the top 5 factors for the inducing of moral hazard in the transaction.Exploratory factor analysis illustrates that the 24 factors can be divided into 7 groups: "legal environment","industry environment","incomplete information","information asymmetry","difficulty to observing information","difference among relevant parties" and "incorrect consciousness".These findings,which contribute to theoretical study of moral hazard,are significant for engineering technology transaction that has been negatively marked with fraudulent conduct.The result of this thesis could serve as a reference for industry practitioners and researchers to better understand and mitigate moral hazard in engineering technology transaction.