Author(s)

Tianyi Xu

Corresponding Author

Tianyi Xu

ABSTRACT

In recent years, the maintenance price of public facilities in residential areas is generally high, which threatens the safety of residential maintenance funds. Although the reasons for the high maintenance cost of public facilities in residential areas are various, the information asymmetry is the most important. On the one hand, the maintenance of public facilities in residential areas covers a wide range of fields, with strong professionalism and high complexity, forming information asymmetry in the professional knowledge of the owners and maintenance parties. On the other hand, the disposition of maintenance location, long maintenance time, difficulty in maintenance supervision, and the lack of enthusiasm of the owner for maintenance supervision have caused information asymmetry in the maintenance process. It is the asymmetry of information that has become the main reason for the maintenance party to falsely report, take the lead, over-maintenance, and ultimately abuse and encroach on maintenance funds. The empirical analysis of the public facilities maintenance data of residential areas in Nanjing found that the higher the information asymmetry, the higher the quotation of the maintenance party, indicating that information asymmetry is an important reason for the high maintenance cost.

KEYWORDS

Housing maintenance funds, Principal-agent theory, Information asymmetry