1、1Study on Transmiting Path of the Financial Risk in Supply ChainAbstract. Firms in a supply chain are interdependent so that one firms financial risk may have impacts on its upstream and downstream enterprises and even cause their financial risk. The essay analyses the transmiting factors of the fin
2、ancial risk in supply chain, and discusses further the transmission path,transmission characteristics and the transmission direction of the financial risks in supply chain. Key words: supply chain; financial risk;transmiting path 1. Financial risk and supply chain financial risks There are broad and
3、 narrow senses to financial risk in the theoretical circles, Broad understanding of financial risk can be summarized as the following three categories view:“Risk of loss of outlook”、 “ Differences in the results view”and “ Concept of uncertainty”. Shaobing Peng and Jingping Xing（2005） consider finan
4、cial risk is the risk that the capital value of their operations in the form of intrinsic value to the value of the uncertainty in the transformation process1.Wei Chen（2006） thinks that Financial risk is the 2financial activities of enterprises due to various uncertain factors, so that corporate fin
5、ancial income and the expected return deviation occurs, suffered the loss of opportunities and possibilities2.Yexiang Jiang and Cunfang Li （2007）consider, financial risks include three meanings: risks caused by the movement of funds; Performance of the monetization of risk; formed by the uncertainti
6、es deviate from the expected return of financial gains, potential losses3. Narrow concept of financial risk that the financial risk from the companys debt capital, Is a very state of corporate financial state, Generally include the following two: First, the lack of cash solvency, That, due to net ca
7、sh flow sufficient to repay the debt principal and interest due; Second, the balance of insolvency,that is The enterprise income over expenditure in the case can not repay the debt principal and interest . We believe that the corporate financial activities, can not be limited to financing activities
8、. For the reason, More general concept of the whole process from production operations to reflect the companys financial risk. Supply chain financial risks is the node enterprises in supply chain business decision and caused by financial decisions. And thus caused the entire supply chain 3deteriorat
9、ing financial situation or financial results uncertainty of loss. Michael G. Hertzel（2008）have shown through empirical studies that the supply chain of the enterprises own financial difficulties would have close contact with suppliers, customers, competitors and even the financial impact4. If an ent
10、erprise supply chain risk lead to the risk of upstream and downstream companies, gave rise to inter-enterprise supply chain, the transfer of financial difficulties. To financial risk of a single enterprise, supply chain financial risks has interactive games, relevance, delivery, level, diversity, co
11、mplexity and other characteristics. Study the core business of financial risk transfer is to study the supply chain of financial risk factors that lead to the risk source, financial risk in the supply chain through which the carrier, along the path to which the risk of transmission to the next node.
12、 2. Key elements of Supply chain financial risk transfer 2.1 Risk source of financial risk Enterprises in the financial activities, due to various internal and external uncertainties, the company financial results with the expected return deviation occurs, resulting in financial loss, that financial
13、 risk. We call this the 4uncertainty caused by financial risk factors for the source of financial risk, including external factors and internal factors into two categories. Corporate financial risk caused by external factors including the overall industry environment factors, environmental factors.
14、Overall environment, including political, economic, social, natural environment and technological environment, uncertainties,industry,including industry,environmental uncertainty factor markets, industry competition, product market and industry aspects. The main source of internal risk refers to the
15、 internal aspects of running the system management decisions because of uncertainty to the risks of corporate finance activities. These include enterprises in the organization and strategic management, technology management, human resources management, procurement, production and sale of other aspec
16、ts of uncertainty5. Source of financial risk and business risk relationship can be characterized by the introduction of corporate financial risk factors(accounting elements of its structure) analysis. Accordance with the“risk causing factors-risk characterization factors - corporate financial risk,”
17、 the causal relationship analysis process, According to the systems goals, elements, structure, function, interaction between the environment and 5effects, We can conclude that the risk of generation and transmission of corporate financial framework，transmission process shown in Figure 16. As can be
18、 seen from Figure 1，first, corporate financial risk factors that characterize the changes will directly cause actual operating results and business expectations deviation occurs, Secondly, the external environment changes caused by factors; Secondly, the external environment changes caused by factor
19、s, on the one hand will be a direct result of corporate financial risk characterization factors change, also lead to internal management changes caused by risk factors, and thus indirectly lead to corporate financial risk. Internal management changes in risk factors will cause a direct result of cor
20、porate financial risk characterization factors, so that actual operating results and business enterprise is expected to deviate, Produce corporate financial risk. 2.2 Transmiting carrier of the financial risk The so-called carrier is able to pass or carry some other substances, thus affecting the pe
21、rformance of the material body7. As the supply chain are interrelated,enterprises in the financial risk of the nodes under the action of the source of financial risk, will be attached to some tangible or 6intangible things are delivered to all nodes in the supply chain companies, this financial risk
22、 transfer between enterprises is the bearer of the financial risk of transmission of the carrier. Classified according to the source of financial risk, risk transfer vectors can also be divided into internal and external carrier carrier into two categories. Next, form according to the presence of su
23、b-carriers, Corporate financial risk can be divided into the dominant carrier and implicit two categories. Specifically shown in Figure 2. As the corporate finance activities are centered on the movement of funds, therefore, supply chain financial risks of transmission carrier is mainly reflected in
24、 financial, material, technology and information above these dominant carriers; The special nature of sport as enterprise funds, financial risk in the supply chain will pass through some of the hidden vector. Fig. 2. carrier of financial risk. 2.3 Threshold mutation in financial risk transfer In the
25、 course of their own with some self-regulation and self-improvement features8, when the enterprises financial risk in the affordable range, enterprises through its own regulatory function to adjust and adapt, at this time of 7financial risk is not fully apparent, at rest and slow development and rel
26、ease status. When the company bear the financial risk beyond the limit,companies will be unable to bear the financial risk and absorb losses, financial risk within the company first spread and transmission, and then will be in its original form or after coupling the risk of mutation patterns in the
27、spread of the enterprise supply chain and delivery, corporate financial risk into the supply chain to financial risk. There are three forms in the threshold mutant of supply chain financial risks: firstly, when the source of financial risk more than the accumulation of a node in the enterprise suppl
28、y chain, the threshold value, financial risk in the enterprise produces conduction; secondly, when the amount of financial risk transfer than other nodes in the supply chain business threshold, financial risk transfer in the supply chain;thirdly, when each node in the supply chain enterprise as inte
29、rnal and external factors, allows businesses to reduce anti-risk threshold, prompted the original financial risk in the supply chain diffusion and transfer. 3. Transmiting path of supply chain financial risks 3.1 Type of supply chain financial risk transfer 8Supply chain financial risks can be divid
30、ed into the following types of transmiting (1) Direct transmission in enterprise supply chain (2）Indirect transmission in enterprise supply chain (3) Transmission among the supply chain Figure 3 describes the supply chain of financial risk transfer principles. 3.2 Characteristics of financial risk t
31、ransmission path in supply chain Supply chain financial risks of transmission can be divided into rational and irrational conduction conduction process. 3.2.1 Rational transfer Conduction is the reason the supply chain between enterprises and enterprises of each node and other economiclinkages betwe
32、en the main results. Enterprises and other economic agents in each other case, there is between them a wide range of information exchange and business contacts,this link allows the interests of economic entities have become a part of the chain, the chain mobility depends on every link of the chain m
33、obility, the mobility of every aspect of contact interrupts the flow of the entire chain will lead to interruption of contact . As a department within the enterprise 9or business in this part of the crisis spread to other parts of the chain process of the crisis is the crisis of rational conduct bus
34、iness process9 . Generally speaking, rational transmission can be divided into network-like conduction and chain-shaped conduction. Chain-type conduction This model is a financial risk to the supply chain companies as a starting point of a node in turn outward conduction. For example, a company in f
35、inancial crisis because companies can not pay B money, corporate money can not return to Long B, C and thus can not pay the loan business, That is, a domino effect, chain disruptions business interests, chains appear on the node enterprises have the financial crisis; In addition, chain transfer mode
36、 can also be upstream from downstream enterprises to conduct business, become reverse conduction.That is, a domino effect, chain disruptions business interests, chains appear on the node enterprises have the financial crisis; Specifically shown in Figure 4. Network-type conduction With the developme
37、nt of economic globalization and outsourcing, business connections between the increasingly complex supply chain network structure presented. Financial 10risk in the supply chain also show a more complex transmission characteristics shown in Figure 5. In the network transmission process, the specifi
38、c type of radiation can be divided into network-centric delivery, centralized network transmission and interactive situations conduction 10 . 3.2.2 Non-rational transfer Financial risk control environment with a strong demonstration and induction. Irrational conduct business crisis is the transmissi
39、on of information asymmetry in the context of, the financial crisis supply chain, causing other companies to duplicate some of the irrational behavior led to financial risk(such as the timely and full payment can not withdraw or transfer money or investment). This situation is similar to the “broken
40、 window effect.“ As long as there is no management of the first fan of “broken windows“, which will give fans the broken windows create a feeling of disorder, others may be implied by the connivance of some to break more windows. Such as bank loans in the broken window effect because some banks continued to provide illegal loans to fund the repayment of these companies can not consider the problem of benefiting disproportionately. In some psychological cues, then the continuous influx of illegal loans until the banks emptied 11.
