Tenure and asymmetric information: An analysis of an incentive institution for faculty development in research universities

Abstract

From the perspective of asymmetric information, a principal-agent model is used to put forward a new theoretical explanation for the validity and effectiveness of tenure. Furthermore, through an analysis of the conditions of implementing an effective tenure system, it is argued that such a system is more efficient in research universities. Based on the above conclusions, the paper also discusses the condition or time for the implementation of tenure in Chinese universities.