Identification and prevention research at the present stage of our corporate financial risk

Corporate finance activities recur throughout the entire process of production and operation. The financial risk is a signal, which can fully reflect the company＇ s consolidated operating conditions. Therefore it requires business owners to conduct regular financial analysis, establish risk awareness, establish effective risk precautionary handling mechanism, strengthen financial risk control, prevent financial crises, establish early warning indicator system, and make proper financial risk decisions. Firstly, a correct understanding of the financial risk from the start, its meaning, characteristics, and so do the reasons for the formation of the exposition clear what financial risks ; Secondly, the financial risk of the formation of a variety of reasons were analyzed.

Retakaful From Syariah Perspective： A Comparative Study

Retakaful is an arrangement to risk of retention limit funding takaful. Similarly, risk arrangements are operated by reinsurance to insurance funding. But, how is the retakaful legal status in Islamic law and the differences between reinsurance. The objective of this study is to identify the status of the retakaful in Islamic law and identify the differences between reinsurance. The study to found that retakaful is prescribed and an alternative to reinsurance, as well as a method of financial protection against the various risks of the takaful industry in excess of the retention limit, which may occur at any time in accordance with the principles of Sharia. Also in this method of risk arrangements, It is found that there are very significant differences in risk between retakaful and conventional reinsurance.

On Structural Approach for the Valuation of Credit Risk

This paper presents structural approach for the valuation of credit risk. Credit risk arises whenever a borrower is expecting to use future cash flows to pay a current debt. It is closely tied to the potential return of investment, the most notable being that the yields on bonds correlate strongly to their perceived credit risk. Structural approach is based on the volatility of the total value of the firm. The credit risk to this measured in a standard way. The random time of default is defined in an intuition way. The default event is linked to the notion of the firm＇s insolvency. This approach is known to generated low credit spreads for corporate bonds close to maturity. It requires a judicious specification of the default barrier in order to get a good fit to the observed spread curves.

The Risk Evaluation of Agricultural High-tech Investment Project

The agricultural high-teeh investment project （AHIP） is eharaeterized by technology-intensive, high risk and great profit. This article analyzes essential factors of the risks of the agricultural high-tech investment projects and the traditional risk evaluation method of agrtcultral projects. We think that the applications of the sensitivity, analysis and probability ore defer. Therefore; this article introduces a structural model to evaluate the risks of the agricultural high-tech investment projects and the system of the concrete evaluation indexes.

An optimal incentive contract to venture capitalist

This paper aims to study the principal-agent relationship between investors and venture capitalists （VCs）, makes research on the moral hazard issues under this relationship, and how to design an effective incentive mechanism to avoid it. By constructing a new incentive model, this paper provides the reference for investors to establish a reasonable payment contract. The designed incentive contract is a kind of dominant consecutive payment mode, which plays a strong incentive role to the VCs, in addition, it also requires the VCs to invest certain capital to the project, which can effectively prevent the slapdash action of VCs, and reduce the agent cost of investors.

The risk analysis and prevention on the pro-poverty-tourism category BOT project

BOT is a new investment and financing model to find favor with many countries because of its own characteristics and advantages. The paper takes analysis on its characteristics and the main risk factors of the Chinese pro-poverty-tourism category BOT project based on the projects related to the domestic and international risk management, and gives some relevant preventive measures.

Time-consistent investment-reinsurance strategies towards joint interests of the insurer and the reinsurer under CEV models

The present paper studies time-consistent solutions to an investment-reinsurance problem under a mean-variance framework.The paper is distinguished from other literature by taking into account the interests of both an insurer and a reinsurer jointly.The claim process of the insurer is governed by a Brownian motion with a drift.A proportional reinsurance treaty is considered and the premium is calculated according to the expected value principle.Both the insurer and the reinsurer are assumed to invest in a risky asset,which is distinct for each other and driven by a constant elasticity of variance model.The optimal decision is formulated on a weighted sum of the insurer’s and the reinsurer’s surplus processes.Upon a verification theorem,which is established with a formal proof for a more general problem,explicit solutions are obtained for the proposed investment-reinsurance model.Moreover,numerous mathematical analysis and numerical examples are provided to demonstrate those derived results as well as the economic implications behind.

A New Method for the Decomposition of Portfolio VaR

In this paper, we give a new method of decomposing of portfolio VaR which are held with the hypotheses of non-normal distribution, based on the mutual relationships of marginal VaR, component VaR and Incremental VaR, and have the same results with decomposing of portfolio under the hypotheses of normal distribution.

Related the Securities Risk to Time by Using Energy Measuring

Since Harry M Markowitz published ＇portfolio Selection＇ （1952）, financial economists have proposed many methods to measure risk such as variant, downside-variant, average absolute deviation, maximum deviation, VaR and so on. However, these methods share a common limitation, which only consider moment of the price, not consider the influence of exchange quantity. In common situation, these methods and their financial theory models can help investors prevent and scatter the risks effectively, but they are no effective to prevent the financial crisis such as Southeast Asia financial in1997 and LTCM crisis in 1998. In this paper, a new method of measuring risk called energy-risk has been proposed. The aim to this method is to respond the usual risk as well as the risk caused by unexpected event and to prevent the risks under any circumstances effectively.

Decision-making of Exit in Venture Capital： Real Options

Two important issues in exit of venture capital, exit timing and exit approaches, are analyzed. Based on the real options theory and the contingent claims analysis, it develops approach-selecting models in terms of Trade-sales and Initial Public Offers and corresponding timing models. Furthermore, thresholds of cash flows as well as value of real options are derived. Finally, decision criteria of exit of venture capital are obtained and empirical evidence shows that the criteria agree with the real investment activities very well.

Optimal Investment with Multiple Risky Assets for an Insurer with Modified Periodic Risk Process

This paper considers the optimal investment problem for an insurer in the sense of maximizing the adjustment coefficient of the risk process.The authors propose a modified periodic risk model in which the periodic risk process is perturbed by a standard Brownian motion.The insurer can invest in multiple risky assets and one risk-free asset and the correlations between the risky assets and the risk process are considered.Optimal strategy is obtained explicitly,which is a function of time and related to the risk process.The effects of market parameters on the optimal strategy are discussed and a numerical example is also given.