Risk-aversion revenue sharing contract in financial industry chain

Zhu Chen¹, Lin Li² , Song Tang³, Jia Zhu³

COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(12C) 489-493

¹School of Econmics and Management, Wuhan University, Wuhan 430072, Hubei, China

²School of Sociology, Central China Normal  University, Wuhan 430079, Hubei, China

³Guangzhou Key Research Bases of Regional Financial Policy, Guangdong University of Finance, Guangzhou 510521, Guangdong, China

Revenue sharing contract is one of the effective ways in the coordination of entity industrial chain. However, the specificity of finan­cial industry chain leads to more risks and more complicated coordination. Therefore, this paper constructs a risk-aversion revenue sharing contract to analyze the coordination method of financial industry chain, and also makes empirical analysis on it. The result shows that the risk-aversion revenue sharing contract can play a coordinating role in the financial industrial chain, and the more strengths of peculiarity on risk aversion, the larger benefit share of the enterprise should be.