| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 958011 | Journal of Economics and Business | 2012 | 9 Pages |
Abstract
⺠The paper creates a mechanism that encourages bidirectional flows of resources and knowledge between subsidiaries of a MNC. ⺠I use a principal agent model of a MNC that includes a HQ and two subsidiaries. ⺠The analytical model is based on a risk-sharing contract that penalized the manager for poor performance. ⺠For some parameters, managers may be overcompensated so they are paid more than the increase of profits.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Strategy and Management
Authors
Amir Shoham,