Analysis on E-Business's Optimal Behavior Based on Principal-Agent Theory

Abstract

During researching firms' CIS performance, the e-business's optimization decision behaviors are an important factor. Based on the principal-agent theory, a linear relation model of e-business behavior and CIS performance is set up, which points out the e-business's optimization decision behavior, the numeral relationships between e-business's optimal efforts, optimal capability and CIS performance. According to it, the right e-business are choose and expected CIS performance is computed definitely through the risk preference of e-business, economic environment expectation and economic environment risk expectation to improve the e-business management level.