Year: 2010
Type: article
Abstract: In this investigation, following the principal-agent theory, possibilities to reduce existing information asymmetries are derived and their effects on the information exchange are examined. Results of an empirical investigation based on a structural equation model confirm that monitoring measures and frequent meetings positively influence the exchange of information while explicit contracts have rather negative effects. Premiums and specific investments, however, seem to play insignificant roles. Measures, such as building a reputation mechanism, will probably prove to be effective only in the long run.
Authors: Martin Müller, Sonja Gaudig
Institution: Universität Ulm
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2152597201