Determinants of Moral Hazard in R&D Supply Relations – Empirical Results beyond the Agency-Theory Explanation

Moral hazard can hinder both the realization and the effectiveness of research and development (R&D) supply relations. However, to the best of our knowledge, there have been no empirical studies investigating the determinants of moral hazard under the specific circumstances of R&D supply relations. Based on a study on 104 cases, this article will help to fill that gap. The results not only confirm information asymmetries as determinants, as predicted by principal-agent theory, but also reveal surprising effects of additional factors. Thus, we show that the general explanation of moral hazard needs to be adapted to the specifics of a concrete exchange situation