A Study on the Mechanism of Financial Control Based on One Institutional Game Theory
Based on the agency contract theory,this paper constructs an institutional game model about financial control between the investor and the manager in Enterprise.According to the model,we can draw conclusions about mechanism of financial control:firstly,being an institutional arrangement,the financial control effecting depends on the institutional cost( monitoring cost).Secondly,the restrictive function of financial control is able to turn external cost caused by the managers breaking agency contract to internal cost and makes sure managers,internal cost can restrict them to break agency contract.Finally,the incentive function is to realize equilibrium between rights of financial control and financial claims,by which,the conflict of agency contract between investors and managers can be coordinated.
Financial control Institutional game Mechanism
Liu Meijuan
Zhejiang Forestry University,Hangzhou,Zhejiang,China ,311300
国际会议
杭州
英文
85-88
2008-04-21（万方平台首次上网日期，不代表论文的发表时间）