The Research on Control Mechanism Exerted to People from HQ by MNC Based on Principal Agent Theory
The relationship between multinational corporation (MNC) and the people of its subsidiary company (SC) from headquarters (HQ) is typical principal-agent, if the HQ motivates them only, it cant maximize its profit. Additionally, the primary factor that affects the degree of effort of the people from HQ is the risk about corrupted morality which is mainly composed of deceit and laziness, and these actions maybe increase the cost of principal and agent This paper contrasted and analyzed two models about the relationship in theory, discovered that the HQ should introduce control mechanism simultaneously when it managed the them, and provided a flame of control mechanism.
Multinational corporation Principal-agent theory Control mechanism Incentive mechanism Cultural Diversity
XIE Shu qing ZHANG Chun ping
Glorious Sun School of Business and Management,University of Donghua,P.R.China,200051 College of Management,Beijing Sport University,P.R.China,100084
国际会议
2008 International Conference of Management Science and Engineering(2008管理科学与工程国际学术会议)
河南焦作
英文
450-454
2008-11-01（万方平台首次上网日期，不代表论文的发表时间）