Research On Financial Risk Conduction And Control For Listed Companies

Enterprises always keep the dynamic economic exchanges with the external units in their day-to-day business life. Even in the internal, the conductions of business are also the results of the divisions’hardworking, unity and cooperation. Financial risks are widespread and pervasive, and the financial events, such as Qionghuaqiao and Delong, tell us financial risks are likely to occur conductivity. Companies or Departments who grant financial risks will conduct financial risks to the companies or departments who receive financial risks through the value chain and risk chain. The basic theories, data analysis and the control methods and strategies of financial risk conduction will improve the theories and capabilities of financial risk management in a large extent.After proposing the background, objectives, content and methods of research, Let’s divided five parts to launch the elaboration. The chapter Ⅱ describes the financial risks conduction connotation and theoretical basis-risk management theory, the theory of thermodynamic, cybernetics and foundation theory of financial risks control. It dissects the constitute elements of financial risks conduction, including risk accumulation which is constituted not only by risk sources who carry risk factor, but also the risk threshold and risk incentives, the conduction path which is concluded by internal direct or indirect conduction, direct or indirect conduction between the enterprise and external units, the indirect conduction between the external unit, the conduction medium such as the goods flow, capital flow, information flow, and the staff, and so on, the conduction effects including butterfly effect, domino effect the broken windows theory and the coupling effect in chapter Ⅲ. Then in chapter Ⅳ by using the public available financial data of listed companies between2009to2011,via Z score model and BP neural network, the financial risk conduction dynamic system is modeled and predicted; And besides the above,the principles, strategies and methods of control of financial risks conduction is proposed in chapter Ⅴ; Finally, the case of Qionghuaqiao listed companies is utilized to carry on substantive analysis of the financial risk conduction, and followed by study concluded and the prospect.