Journal of University of Jinan(Science and Technology). 2015, (02) Core

Incentive mechanisms on staff in multi-area student-origin credit loan managementChinese Full Text

DING Libo;WAN Shengcai;XIE Naiming;LI Bangyi;College of Economics and Management,Nanjing University of Aeronautics and Astronautics;Department of Student Affairs,University of Jinan;

Abstract: In student-origin credit loans,banks entrust county-level financial assistance centers to manage and encourage their staff according to their achievement,which is decided on staff effort,bank evaluation and common uncertainty factors. However,the evaluation subjectivity and the bank moral hazard of not fulfilling incentive promises weaken the incentive intensity and hinder the loan policy running smoothly. Tournament theory is an incentive mechanism that studies principal-agent problems based on participant’s performance rank order. Study shows that relative performance ranking method can eliminate the influence of common uncertainty factors on staff’s performance,and in the specified performance index contract,bank’s dominant strategy is promising to pay higher reward for higher performance according to a reasonable proportion. The studies suggest that the design of incentive mechanism should be based on the employee’s effort rather than the absolute performance,and the bank should only pay the reward except for fixed salary because the staff are government emplyee. Punishment given by bank together with government would also have the incentive effect to staff.

Keywords：

county-level financial assistance center staff; bank moral hazard; tournament mechanism; incentive mechanism;

DOI：
10.13349/j.cnki.jdxbn.2015.02.006
Series：
Subject：
Classification Code：
F272.92;F832.479

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Incentive mechanisms on staff in multi-area student-origin credit loan managementChinese Full Text

DING Libo;WAN Shengcai;XIE Naiming;LI Bangyi;College of Economics and Management,Nanjing University of Aeronautics and Astronautics;Department of Student Affairs,University of Jinan;

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