The Information Asymmetry, Shareholders' Expectation Discrepancies and Entrepreneurs' Selection Behaviors

The mainstream economists generally believe that the entrepreneur is the agent whom the shareholder hires. However, in recently years' entrepreneurs attach more importance to shareholder's constitution, and they prefer shareholders who possess the similar expected value towards theirs companies. This paper studies how the entrepreneurs fulfill their desires through the structural adjustment of stockholders' rights in the economies in which exterior shareholders have discrepant expected value.