Title :
The equilibrium model between the financial risk and the efficiency for diversified financial operation: An example of financial conglomerates model
Author :
Yongping, Ruan ; Yiran, Feng ; Mengxin, Xu
Author_Institution :
School of business East China University of Science and Technology (ECUST), No. 130 Meilong Road, 200237, Shanghai, China
Abstract :
Diversified financial operation has its advantages such as the economics of scale, economics of scope and X-efficiency. Meanwhile, it also causes complex special financial risks. When the cost of the integration and supervision equals the incremental non-risk return and risk premium return, the financial conglomerates achieve the equilibrium of the minimum of the risk and the maximum of the profit.
Keywords :
Companies; Complexity theory; Economics; Insurance; Investments; Resource management; diversified financial operation; equilibrium; financial conglomerates; the risk and the efficiency;
Conference_Titel :
E -Business and E -Government (ICEE), 2011 International Conference on
Conference_Location :
Shanghai, China
Print_ISBN :
978-1-4244-8691-5
DOI :
10.1109/ICEBEG.2011.5882240
