Title :
Principal-agent theory in venture business
Author :
Zhao, Yan ; Lu, Ying
Author_Institution :
Sydney Inst. of Language & Commerce, Shanghai Univ., Shanghai
Abstract :
Agent distortion issue occurs as traditional Holmstrom- Milgrom model is applied to venture business. To wipe out this difficulty, this paper does reconstructions and extensions towards classical principal-agent theory, brings forward ob-endeavor theorem, validates moral hazard with hidden action, and discovers synergy effect of the endeavor level towards endeavor effect index through calculating long-term endeavor of venture entrepreneur by Newton method and computer graphics.
Keywords :
Newton method; venture capital; Newton method; computer graphics; ob-endeavor theorem; principal-agent theory; traditional Holmstrom- Milgrom model; venture business; venture entrepreneur; Business; Computer graphics; Electronic mail; Ethics; Forward contracts; Hazards; Integrated circuit modeling; Newton method; Signal design; Venture capital; endeavor effect index; moral hazard with hidden action; principal-agent theory; venture business; venture entrepreneur;
Conference_Titel :
Control and Decision Conference, 2008. CCDC 2008. Chinese
Conference_Location :
Yantai, Shandong
Print_ISBN :
978-1-4244-1733-9
Electronic_ISBN :
978-1-4244-1734-6
DOI :
10.1109/CCDC.2008.4597838
