Research On The Circuit Court System In China From Perspective Of The Principal-agent Theory

In order to optimize the allocation of judicial power, our country proposed the establishment of the circuit court of the Supreme People’s Court. However, what kind of theoretical presupposition should the construction of the circuit court system follow? How to locate its functions? What is the relationship between the Supreme People’s Court and the circuit court? How to prevent the circuit court from deviating from the original intention of the system design? How to make sure that the circuit court is really in accordance with the Supreme People’s Court’s will? The answer to this series of questions is about the scientific construction of the circuit court system and the sound operation of the circuit court. In this paper, the relationship between the Supreme People’s Court and the circuit court is the premise of the economic significance of the principal-agent relationship, reviewed the deviation of function and the dislocation of system of the current circuit court system in detail,and the experience of the United Kingdom circuit court and the lessons learned from the basis of the system, proposed to improve the system of China’s circuit court opinion and advice.In addition to the introduction and conclusion, the full text is divided into four parts:The first part is the ideal position of the Supreme Court and the circuit court. There is a non agreement objective and asymmetric information between the principal and the agent, the agent may have the reverse selection and moral hazard, which deviate from the objective of the principal. The principal’s task is to design the optimal contract to motivate and constrain the agent,which make the agent from purpose itself to take action to maximize the principal’s purpose.The Supreme Court and the circuit court should be the principal-agent relationship;the principal-agent problem should be prevented and controlled.The second part is the deviation of function and the dislocation of system of the circuit court system in our country. The circuit court system function deviation is, the actual function of current circuit court system deviate from the circuit court system in the functional desire ideal location. The system of the circuit court system in our country is the reflection of the existing system, the design of the existing system of incentive and supervision of the shortcomings of weak.The third part is the analysis of the management of the principal-agent problem in thecircuit court system of the United Kingdom. The United kingdom circuit court system provides the experience for the circuit court system in our country, which is mainly used in the form of trust mechanism, restraint mechanism and competition. The inspiration of the lesson is that the principal can not neglect the external factors of the principal-agent relationship, and to control the conflict of objective function of the agent.The fourth part is the perfection of the circuit court system in our country. In this part, we take the principal-agent theory as the instruction, and the problem of the principal-agent problem is the key point. On the basis of the experience of the operation of the circuit court system in the United Kingdom, the establishment of incentive mechanism, such as material motivation, professional security and reputation incentive mechanism, and the improvement of the supervision of the system, the perfection of the supervision of the media, and the standard of media supervision.