Interpreting Agency Theory Through Greiner Growth Model: Regulatory Mechanism Reduces Agency Costs for Modern Chinese Enterprises

DOI

10.2991/assehr.k.210806.156How to use a DOI?

Keywords

Agency theory, Organizational development cycle, Regulatory mechanism, Agency cost

Abstract

In Chinese organizations, the principal often delegates power to the agent, but their different interests will bring conflicts and contradictions. This phenomenon is the source of the agency problem. With the development of academic research, besides Principal-Agent Conflicts, Principal-Principal Conflicts and Principal-Creditor Conflicts also exist in the organization. When faced with complicated agency problems, only by understanding its causes can the organization better respond to them. The Greiner Growth Model, which describes the stages of organizational development, is a good starting point for analyzing the origin of agency problems. Based on this model, this paper discovers the importance of regulatory mechanisms in the process of solving agency problems and proposes solutions to three types of agency problems respectively, emphasizing the critical position of regulatory mechanisms in modern Chinese enterprises.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Drake Keyang Zhou
AU  - Aaron Weixu Sun
AU  - Joseph Yuanlong Zhang
PY  - 2021
DA  - 2021/08/09
TI  - Interpreting Agency Theory Through Greiner Growth Model: Regulatory Mechanism Reduces Agency Costs for Modern Chinese Enterprises
BT  - Proceedings of the 2021 5th International Seminar on Education, Management and Social Sciences (ISEMSS 2021)
PB  - Atlantis Press
SP  - 819
EP  - 828
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210806.156
DO  - 10.2991/assehr.k.210806.156
ID  - Zhou2021
ER  -