Research Of Principal-agent Problem Between Enterprises' Cooperation In Supply Chain

Along with economic globalization and scientific and technological development, the enterprise's business environment has undergone profound changes. Competitions among enterprises have changed from purely competition to the competition also with cooperative, enterprise relations of cooperation is increasingly becoming a hot issue in enterprise management. Supply Chain Alliance as an effective cooperation between enterprises can make independent of each enterprises to achieve some common goals with the Union of their core competencies of respective strengths and areas, and overall and individual enterprises can have a profit. However, due to the existence of asymmetric information, adverse selection and moral hazard problem caused by principal-agent become a threat to the cooperation between enterprises in the supply chain, and therefore studying how to eliminate and reduce the adverse selection and moral hazard problem in supply chain between enterprises is necessary. At the same time, these studies also have certain significance for Chinese enterprises to change their management philosophy and management style, and to adapt to the international business strategy, improving the survival and competitiveness.On the base of the analysis of the causes of the supply chain, we have a study on principal-agent mechanism between enterprises in supply chain, which leads to the principal-agent problem, namely adverse selection and moral hazard problems. After the analysis of the dangers of adverse selection and moral hazard to the enterprises, through modeling shows that in the basic premise of information asymmetry conditions, signal transduction and signal through screening can solve the problem of adverse selection, but the agents in order to show their type, they have to pay more cost and effort. In order to solve the problem of moral hazard, the client must inspire the agents, and agents of risks with agents.In the last part, we analyze the adverse selection and moral hazard problem, and pointed out that Chinese enterprise's cooperation in supply chain have its own characteristics. We use the conclusion of the last part to analyze the supply chain and corporations between Enterprises in China's supply chain and draw the conclusion to the problem.We have research on the problem of adverse selection and moral hazard problems at the same time, and can provide a theoretical basis to enterprises in the supply chain enterprises on how to resolve the problem. Moreover, this analysis of the domestic supply chain enterprises in a number of questions put forward some recommendations for improvement, there is certain practical significance. It also needs to continue to study the direction of multi-tasking and multi-agent problem.