This paper builds a"moral risk model" between investor and company during the project investment by applying"principal-agent theory" in the information economics theory.

Principal-agent Theory and Accrual-based Governmental Budgeting and Accounting Reform;

The Study on the Supervising and Managing for the Operators of State-owned Enterprises under the Principal-agent Theory;

In this paper,the relationship among attendees in the system is analyzed according to the Measure,and the principal-agent theory is used to design optimally for the incentive mechanism of common principal-agent relationship.

The principal-agent theory is used in the mechanism design to make the mechanism incentive.

Based on expected utilities of the owners and the contractors,using the principal-agent theory,three kinds contract incentives models were created,they are: limited liability contract,cost-plus fixed percentage fee contract,and share distribution formula contract.

Based on asymmetric information game and principal-agent theory,by analyzing the forming reasons and connotation relationships of agency costs which occurs during the process of engineering project procurement,this paper gives out the model of best contract and monitor mechanism.

A traditional return model of the BOT project was derived based on the principle-agent theory.