Study Of Conduction Mechanism Of Financial Holding Conglomerates' Financial Risk

Financial holding company(FHC) is the organizational choice of many countries in the trend of financial mixed operation at present.Frequent financial risk made the safty of financial system more important than ever.The safty of the FHCs which occupy large financial resources becomes the core of the problem.But our country still lacks macro and micro monitoring system to identify,measure and respond to the financial risk of FHCs.So it makes great sense to research on this subject.In this article, canonical analysis and empirical analysis are used together to demonstrate this problem.In the theoretical part, "energy theory","vector theory" and "theory of organism's three systems" are used to explain the operating mechanism of the FHC's financial risk,which include the financial risk's clause,meaning and mechanism.Then three elements of financial risk's conduction are used to analyze the phase characteristics of the FHC's risk operating.From the condition in and out of the FHC,the path-depended characteristic of financial risk conduction is deduced.After that,this article also discusses how FHC's financial risk is turned into the financial system risk and how the risk energy is enlarged.At last,FHC's financial risk conduction model is deviced according to circuit theory. In the empirical part,the case of Delong is used by the article.According to the financial statements of"three old stocks"from 2000 to 2004,we can get the indexes of financial risk conduction about Delong in each year.Results is analyzed in the end.It is concluded that financial risk conduction system of FHC is a complicated energy transforming system whose internal conduction increases the external effect.So we should enhance the regulation of FHC's financial risk conduction.