Rearch on incentive-constraint mechanism of Chinese private enterprises manager

摘要

Due to inconsistent objectives and asymmetric information, serious principal-agent problems often occur between private business owners and their professional managers. The first problem of the principal-agent problem in private businesses is monitoring, i.e., the problem of asymmetric information, while the second probelem is the incentive-constraint problem based on the monitoring. Only effective monitoring can well evaluate the contribution of professional managers, which can more effectively motivate professional managers.