Model Perspective

Feb 9, 2026 · Operations

How a Chinese Logistics Boss Applied Principal‑Agent Theory to Clear 1.05 M Debt

Using a principal‑agent framework, the article analyzes how a Zhengzhou logistics entrepreneur eliminated a 1.05 million‑yuan debt by sharing 50% of profits with staff, abolishing attendance checks, and restructuring incentives, supported by detailed financial calculations, Holmstrom’s theory, and practical implementation steps.