The impacts of risk attitude and information structure on corporate political activity in equipment procurement: A linear contract model

Hai Long Liu; Jian Li

doi:10.1109/EBISS.2009.5138118

The impacts of risk attitude and information structure on corporate political activity in equipment procurement: A linear contract model

Hai Long Liu^*, Jian Li

^*Corresponding author for this work

Beijing Institute of Technology

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

Corporate political activity (CPA) is an important factor in the principal-agent relationship between equipment firms and the military during highly administrative equipment procurement activities. Based on a linear contract model, we find a negative relationship between CPA supply and the degree of risk aversion of equipment firm, and an adverse supply of CPA with hidden information possessed by the military, making the equipment market would eventually disappeared.

Original language	English
Title of host publication	2009 International Conference on E-Business and Information System Security, EBISS 2009
DOIs	https://doi.org/10.1109/EBISS.2009.5138118
Publication status	Published - 2009
Event	2009 International Conference on E-Business and Information System Security, EBISS 2009 - Wuhan, China Duration: 23 May 2009 → 24 May 2009

Publication series

Name	2009 International Conference on E-Business and Information System Security, EBISS 2009

Conference

Conference	2009 International Conference on E-Business and Information System Security, EBISS 2009
Country/Territory	China
City	Wuhan
Period	23/05/09 → 24/05/09

Keywords

Adverse supply
Corporate political activity
Equipment procurement
Hidden information
Risk aversion

Access to Document

10.1109/EBISS.2009.5138118

Cite this

Liu, H. L., & Li, J. (2009). The impacts of risk attitude and information structure on corporate political activity in equipment procurement: A linear contract model. In 2009 International Conference on E-Business and Information System Security, EBISS 2009 Article 5138118 (2009 International Conference on E-Business and Information System Security, EBISS 2009). https://doi.org/10.1109/EBISS.2009.5138118

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abstract = "Corporate political activity (CPA) is an important factor in the principal-agent relationship between equipment firms and the military during highly administrative equipment procurement activities. Based on a linear contract model, we find a negative relationship between CPA supply and the degree of risk aversion of equipment firm, and an adverse supply of CPA with hidden information possessed by the military, making the equipment market would eventually disappeared.",

keywords = "Adverse supply, Corporate political activity, Equipment procurement, Hidden information, Risk aversion",

author = "Liu, {Hai Long} and Jian Li",

year = "2009",

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language = "English",

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series = "2009 International Conference on E-Business and Information System Security, EBISS 2009",

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Liu, HL & Li, J 2009, The impacts of risk attitude and information structure on corporate political activity in equipment procurement: A linear contract model. in 2009 International Conference on E-Business and Information System Security, EBISS 2009., 5138118, 2009 International Conference on E-Business and Information System Security, EBISS 2009, 2009 International Conference on E-Business and Information System Security, EBISS 2009, Wuhan, China, 23/05/09. https://doi.org/10.1109/EBISS.2009.5138118

The impacts of risk attitude and information structure on corporate political activity in equipment procurement: A linear contract model. / Liu, Hai Long; Li, Jian.
2009 International Conference on E-Business and Information System Security, EBISS 2009. 2009. 5138118 (2009 International Conference on E-Business and Information System Security, EBISS 2009).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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N2 - Corporate political activity (CPA) is an important factor in the principal-agent relationship between equipment firms and the military during highly administrative equipment procurement activities. Based on a linear contract model, we find a negative relationship between CPA supply and the degree of risk aversion of equipment firm, and an adverse supply of CPA with hidden information possessed by the military, making the equipment market would eventually disappeared.

AB - Corporate political activity (CPA) is an important factor in the principal-agent relationship between equipment firms and the military during highly administrative equipment procurement activities. Based on a linear contract model, we find a negative relationship between CPA supply and the degree of risk aversion of equipment firm, and an adverse supply of CPA with hidden information possessed by the military, making the equipment market would eventually disappeared.

KW - Adverse supply

KW - Corporate political activity

KW - Equipment procurement

KW - Hidden information

KW - Risk aversion

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DO - 10.1109/EBISS.2009.5138118

M3 - Conference contribution

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BT - 2009 International Conference on E-Business and Information System Security, EBISS 2009

Y2 - 23 May 2009 through 24 May 2009

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Liu HL, Li J. The impacts of risk attitude and information structure on corporate political activity in equipment procurement: A linear contract model. In 2009 International Conference on E-Business and Information System Security, EBISS 2009. 2009. 5138118. (2009 International Conference on E-Business and Information System Security, EBISS 2009). doi: 10.1109/EBISS.2009.5138118

The impacts of risk attitude and information structure on corporate political activity in equipment procurement: A linear contract model

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