In order to overcome the shortcomings brought up by the single-layer agency relation analyses of agency problems within enterprise group, two-tiered agency models in the internal capital market are set up, and how ren...In order to overcome the shortcomings brought up by the single-layer agency relation analyses of agency problems within enterprise group, two-tiered agency models in the internal capital market are set up, and how rent-seeking behaviors of member firms＇ managers affect investment allocation decision made by headquarters manager is demonstrated. From equilibrium solutions of the model, it＇s inferred that the larger the divergence of member firm＇s productivity is, the higher probability of investment allocation distortion is.展开更多
The Rongshida Group, a leading electrical-applianceproducer in China, planned to choose its advertising agent fromfour candidates, the China Advertising Inc., Shanghai Ogilvy &Mather, Shanghai Leo Burnett and RSCG...The Rongshida Group, a leading electrical-applianceproducer in China, planned to choose its advertising agent fromfour candidates, the China Advertising Inc., Shanghai Ogilvy &Mather, Shanghai Leo Burnett and RSCG, by balancing one oftheir advertisement proposals against another. Lasting five daysand nights, the customer finally selected RSCG as its agent. Bossof the China Advertising Inc. said they bed lost the competitionto the three 4A companies not in terms of proposal but becauseof comprehensive power.展开更多
文摘In order to overcome the shortcomings brought up by the single-layer agency relation analyses of agency problems within enterprise group, two-tiered agency models in the internal capital market are set up, and how rent-seeking behaviors of member firms＇ managers affect investment allocation decision made by headquarters manager is demonstrated. From equilibrium solutions of the model, it＇s inferred that the larger the divergence of member firm＇s productivity is, the higher probability of investment allocation distortion is.
文摘The Rongshida Group, a leading electrical-applianceproducer in China, planned to choose its advertising agent fromfour candidates, the China Advertising Inc., Shanghai Ogilvy &Mather, Shanghai Leo Burnett and RSCG, by balancing one oftheir advertisement proposals against another. Lasting five daysand nights, the customer finally selected RSCG as its agent. Bossof the China Advertising Inc. said they bed lost the competitionto the three 4A companies not in terms of proposal but becauseof comprehensive power.
