Research On Multi - Task Principal - Agent Incentive Model Under Supply Chain Finance

In recent years, as a new way of financing, supply chain finance has developed rapidly in China. And the precondition for its successful run was good cooperation between enterprises in supply chain. However, because of the existence of adverse selection and moral hazard problems, the overall performance of the supply chain would be impacted. Therefore, among three financing modes of supply chain finance, considering accounts receivable financing and combining the multi-task principal-agent model in this paper, the linear incentive between supplier and retailer was studied from the point of multi-task principal-agency theory. To a certain extent, supply chain performance affected by the problems of adverse selection and moral hazard was reduced, thereby maximizing the interests of all parties in the supply chain.Based on accounts receivable financing model and the multi-task principal-agent model, the linear incentive between supplier and retailer was studied. Then, under the condition of different information, different parameter’s effect on the stimulation intensity and the expected income of the manufacturer was analyzed; finally, the optimal level of effort which the receivables business of supply chain finance could run normally was discussed.In the first part, the research background and significance were discussed. With looking up domestic and foreign relevant literatures, an in-depth analysis and reviews of research on supply chain finance, accounts receivable financing and principal-agent incentive were present.In the second part, on the basis of an analysis of current situation, social values and the concept of supply chain finance, the running mechanism of receivables financing was focused on.In the third part, the cost effectiveness differences of various trades in the supply chain between tradition and accounts receivable financing model were analyzed comparatively, and then the advantages of accounts receivable financing model on reducing costs and improving the yield were discussed.In the forth part, based on accounts receivable financing model, and considering the multi-task principal-agent model which independence exists between the tasks, the multi-task principal-agent model of supplier and manufacturer based on accounts receivable financing was set up. Different parameter’s effect on the stimulation intensity and the expected income of the manufacturer was analyzed. Finally, the optimal level of effort which the receivables business of supply chain finance could run normally was discussed.In the fifth part, based on accounts receivable financing model, and considering the multi-task principal-agent model which interdependence exists between the tasks, the multi-task principal-agent model of supplier and manufacturer based on accounts receivable financing was set up. Different parameter’s effect on the stimulation intensity and the expected income of the manufacturer was analyzed. Finally, the optimal level of effort which the receivables business of supply chain finance could run normally was discussed.The last part is conclusions and outlook of the article.