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Industry Environment, Supervision Intensity and the Choice for Credit of Food Enterprises in China: Analysis Based on Incentive Compatibility Constraint Conditions |
WANG Changwei,GU Haiying |
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Abstract The state of food companies’ credit determines the level of food safety. Considering the credit attribute of food, the interaction of food supply chain and the industry effect, the appeal for credit has shown a certain degree of urgency and credit. Based on the P-A theory, this paper finds the condition of incentive compatibility constraint, and analyzes the effect of industry environment and supervision intensity to the credit decision of food enterprises. Due to the lack of screening mechanism of credit, the complexity of food supply chain, and the poor regulation, the credit food companies in our country lack the market incentives, and the non-credit food companies are not duly punished. These lead to the lack of credit of food enterprises in our country.
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Received: 26 December 2012
Published: 15 August 2013
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Corresponding Authors:
WANG Changwei
E-mail: jswangchangwei@163.com
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