IDEAS home Printed from https://ideas.repec.org/a/jfr/bmr111/v8y2019i2p20-26.html
   My bibliography  Save this article

Incentive Contract between Banks and B2B Platform in Online Agricultural Product Supply Chain Finance

Author

Listed:
  • Xiaoxu Chen
  • Peng Xu
  • Guoqiang Yang

Abstract

Online agricultural supply chain finance, as an effective way to solve the financing difficulties of small and medium-sized agricultural enterprises in the chain, has made rapid progress in recent years, and the cooperation between banks and e-commerce has become the mainstream mode. Taking the electronic order pledge of agricultural products as an example, this paper discusses the incentive contract design between banks and B2B platform from the perspective of moral hazard prevention and the use of principal-agent theory. In this paper, the principal-agent model is constructed by considering the bank's effort and no effort, and then give the optimal incentive coefficient and fixed return. The results show that banks¡¯ effort will increase the level of efforts of B2B platform, but also increase their own variable payment; under the given conditions, the bank¡¯s effort will increase its income, and at a certain level of effort, the largest increase in revenue, In addition, improving the application level of B2B data processing technology and the degree of data pledge development will contribute to the increase of incentive coefficient and revenue.

Suggested Citation

  • Xiaoxu Chen & Peng Xu & Guoqiang Yang, 2019. "Incentive Contract between Banks and B2B Platform in Online Agricultural Product Supply Chain Finance," Business and Management Research, Business and Management Research, Sciedu Press, vol. 8(2), pages 20-26, June.
    • Handle: RePEc:jfr:bmr111:v:8:y:2019:i:2:p:20-26
    as

    Download full text from publisher

    File URL: http://www.sciedupress.com/journal/index.php/bmr/article/download/15730/9787
    Download Restriction: no
    File URL: http://www.sciedupress.com/journal/index.php/bmr/article/view/15730
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Heng, Michael S.H., 2001. "Implications of e-commerce for banking and finance," Serie Research Memoranda 0006, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qiang Lin & Ying Peng, 2021. "Incentive mechanism to prevent moral hazard in online supply chain finance," Electronic Commerce Research, Springer, vol. 21(2), pages 571-598, June.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jfr:bmr111:v:8:y:2019:i:2:p:20-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Simon Lee (email available below). General contact details of provider: http://bmr.sciedupress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.