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Essay Details:
Essay text:
Thereby it is appropriated to examine the relationship between the parental firms, and how they can elaborate the operation of the Board of Directors and the Joint Venture managers. This refers to an organization of activities, which had to be done in a single company, and now has to assimilate of two distinct companies. Specifically, by designing contracts and control mechanisms of BOD and parent firms, IJV is less likely to encounter with agency and hold up problem.
Key Words
Agency problems, hold-up problem, formal control, behavior control, Board of Directors, parent firm, IJV managers, complete contract...
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