Study on principal-agent model of Logistics Finance in the environment of supply chain

Abstract

Logistics Finance is currently a new thing in china, which can promote capital flows during logistics finance business processes, it uses various financal products and servces in the supply chain, and then improves efficiency of fund in supply chain. Logistics and finance combine into an innovative service, that is logistics finance which mission uses service, knowledge of supply chain and information technology to help companies achieve their business goals. It is the product of intensive, which contains bank and enterprise as its business objects. In the course of its development, it performs support management and service of logistics, then forms principal-agent relationship among bank, logistics and enterprise. This paper based on principal-agent theory analysed principal-agent relationship. Mathematical model which is under information asymmetry that based on principal-agent issue is constructed, and then optimal contract is designed.