The Research On The Influence Of Financial Ethics On Core Competitiveness Of Trust Company

Over the past 40 years of the reform and opening up,China's economic development has achieved remarkable results.National wealth has been rapidly accumulated.As an important member of China's financial industry,the trust company has followed the pace of the reform and opening up,witnessed the great process of these 40 years,and developed into the largest financial industry second only to the bank.The trust company has played a huge role in preserving and increasing the value of wealth,enriching investment and financing and supporting the real economy.The trust company,as a major player and builder of the financial market,the status of it's development is of great significance to the development of the financial system and even the social economy.In the 40 years of development of the trust industry,there are still problems to be solved urgently.Especially there are problems in the environment of the current “new normal” and new asset regulations.Because of that,the trust company will face a more fierce market competition environment..Some trust companies and individuals have taken short-term interests as a goal,and they have violated the moral standards and undermined the market competition order,such as breach of trust,false propaganda,corruption,etc.These acts have seriously damaged the image of the trust company and disrupted the order of the financial market.It has affected the healthy and sustainable development of China's market economy.The pursuit of excellence in financial ethics has set the stage for trust companies to improve their core competitiveness and sustainable development.Financial ethics combines the behavior of financial economic activities with the morals of ethics.This clears the ethical norms and standards of conduct that trust companies need to observe in financial activities.Financial ethics not only clarifies the specific content of financial behavior of financial entities,but also standardizes the financial behavior of trust companies and sets standards.It can effectively guide trust companies to maintain financial order in financial activities and comply with market rules.Also It will encourage sustainable development of trust companies,financial systems and market economies.This paper starts from the ethical appeals contained in financial activities and take the impact of financial ethics on the core competitiveness of trust companies as the research object,combined with the latest theoretical results of economic ethics,new institutional economics,finance and legal economics.Using normative analysis,empirical analysis,panel data quantile regression analysis and comparative analysis,combined with the specific environment of China's financial market,the author discusses the connotation and characteristics of financial ethics and core competitiveness of trust companies,and analyzes the morals of financial ethics.The impact mechanism of trust company's core competitiveness has established the evaluation system of trust company's financial ethics and core competitiveness.Through empirical research,it has measured the financial ethics of trust companies in China,and has revealed the influence and improvement of financial ethics on the core competitiveness of trust companies.Finally,based on the empirical results,the paper explores the realistic path to improve the financial ethics of trust companies.First of all,this paper sorts out and analyzes the related theories that financial ethics affects the core competitiveness of trust companies.The definitions of trust,financial ethics and core competitiveness are defined,and the connotation,characteristics and functions of financial ethics are expounded.The ethical characteristics of trust companies are analyzed from the characteristics of trust companies in financial activities,and the core competitiveness of trust companies is explored.Connotation and characteristics based on the theories of information asymmetry,principal-agent and stakeholders were analyzed.Also the embedded mechanism,barrier mechanism and identification mechanism of the influence of financial ethics on the core competitiveness of trust companies from macro,meso and micro perspectives were analyzed.Secondly,this paper constructs a financial ethics evaluation model and a core competitiveness evaluation model based on the ethical characteristics and management characteristics of trust companies.By constructing the trust company's financial ethics and core competitiveness evaluation index system,based on the trust company's 2008-2017 public annual report data,with SPSS analysis software for factor analysis and principal component analysis,the evaluation of the trust company's financial ethics and core competitiveness are comprehensive,systematic and comprehensive.Thirdly,the empirical study on the impact of financial ethics on the core competitiveness of trust companies.Based on the comprehensive evaluation results,EViews software was used to conduct empirical analysis using the method of quantile regression to explore the practical evidence that financial ethics can enhance the core competitiveness of trust companies.Finally,based on the empirical research results and the actual situation of China's trust market,this paper explores the realistic path of improving the financial ethics level of trust companies in China.The main conclusions of this paper are:First,the financial ethics and core competitiveness of China's trust companies have increased steadily.After nearly 40 years of development,the development of China's trust industry has made great progress.Through the financial ethics and core competitiveness evaluation system constructed by this paper,which has the financial ethical norms and management characteristics that the trust company should follow in the financial activities and based on the panel data of the trust company annual report in 2008-2017,after evaluation and analysis,it is found that in the past 10 years,although the degree of development of financial ethics and core competitiveness of China's trust companies has been different,the overall level has been greatly improved.Second,the development of financial ethics of trust companies in China is still in an unbalanced state.The empirical results of this paper show that there are some differences in the degree of financial ethics of trust companies in terms of the nature of controlling shareholders and the length of company establishment.In terms of the nature of the company's controlling shareholder,during the sample period,private enterprise holdings and financial institutions' holdings showed the highest degree of financial ethics,which may be due to the rapid development of the financial enterprise culture and management system that the controlling shareholders have accumulated for a long time.The trust companies that are controlled by central enterprises and those with local government backgrounds are relatively unbalanced.They may be regarded as local regional monopoly enterprises.It is easier for trust companies to ignore the financial ethical factors of honesty,altruism and fiduciary responsibility in financial activities.In terms of the company's establishment,during the sample period,the trust companies established after 2008 have the highest degree of financial ethics.The 23 trust companies established between 1988 and 2008 have the lowest level of financial ethics and were established.Trust companies before 1988 continued to maintain a high level.The possible reason is that the financial ethics of trust companies were established at different time and the stages of development experience are affected by different financial market environments,regulatory policies and industry development stages during this period.Third,financial ethics has a significant positive impact on the core competitiveness of trust companies,but it has a different impact on trust companies with different core competitiveness levels,showing an “inverted U” trend.Through empirical research,it is found that the impact of financial ethics on the core competitiveness of trust companies is positive,and the coefficient has been relatively large,indicating that financial ethics has a greater role in promoting the core competitiveness of trust companies.At different levels of core competitiveness,the promotion of financial ethics presents an inverted U-shaped change process that first rises and then falls.Among them,for trust companies with low initial level and low core competitiveness(QR-10),financial ethics has little impact on improving the core competitiveness of trust companies;for trust companies with low development period and low core competitiveness level(For QR-10 to QR-50,the impact of financial ethics on improving the core competitiveness of trust companies is gradually increasing;for high-level trust companies(QR-50 to QR-70)at maturity and core competitiveness,financial impact of ethics on improving the core competitiveness of trust companies has reached its peak.For trust companies with high levels of prosperity and core competitiveness(QR-70),the impact of financial ethics on improving the core competitiveness of trust companies has begun to weaken.This may be trust companies at a higher level(leading to 70% of competitors)have become leaders in financial ethics in the industry,and these trust companies may lack the incentive to invest more energy and resources to further improve their financial ethics.This also shows that the ethical level of the financial system and financial market has a certain impact on the upper limit of the financial ethics level of the trust company.Fourth,financial ethics can enhance the core competitiveness of trust companies through embedded mechanisms,barrier mechanisms and identification mechanisms.Based on the theoretical analysis of the impact of financial ethics on the core competitiveness of trust companies,this paper proposes three mechanisms of embedding,blocking and identification and tests them through empirical evidence.Combining the three mechanisms of financial ethics affecting the core competitiveness of trust companies,there are three paths to improve the financial ethics of trust companies in China are proposed.First,the financial ethics system is improved by strengthening the legal system and improving the supervision in financial ethics activities.The second level is to strengthen the financial ethics of trust companies,adopt the governance structure of stakeholder balance,formulate financial ethics development strategies that match their own characteristics,and establish a comprehensive financial ethics management system to improve the financial ethics of trust companies.The third is to strengthen the professional ethics of the practitioners by improving the financial ethics awareness level of the trust company executives and cultivating the employees' professional ethics.This article attempts to innovate in the following aspects:First,it has opened up new areas for the study of financial ethics.The existing research on financial ethics mainly focuses on the theoretical level.A small amount of research on the financial industry is mainly concentrated in the banking industry and the insurance industry.We still need more research on the financial ethics of trust companies,especially the impact of financial ethics on the core competitiveness of trust companies.Second,new research methods have been added to the empirical research of financial ethics.This study applies the quantile regression method to the quantitative analysis of the impact of financial ethics on the core competitiveness of trust companies,and realizes the analysis of the differences and trends of the impact of different levels of financial ethics on different core competitiveness levels.Different development strategies of trust companies with different stages of development and different core competitiveness levels were put forward.Third,it provides a new theoretical explanation for the impact of financial ethics on the core competitiveness of trust companies in the Chinese environment.Based on the origin and development of the trust system and the ethical characteristics of modern trust companies,this paper studies the ethical norms and codes of conduct that trust companies should follow in financial activities,which are integrity,altruism and responsibility.Through the theories of information asymmetry,principal-agent,stakeholder,embedded theory and game theory,this paper analyzes the embedded mechanism,barrier mechanism and identification mechanism of the influence of financial ethics on the core competitiveness of trust companies.All these promote the trust company of financial ethics in the Chinese environment and provide new theoretical explanations for the core competencies.Fourth,it provides a new path for Chinese trust companies to improve their financial ethics and development decisions.According to the empirical research results of this paper,the financial ethics level of trust companies has a positive impact on the improvement of core competitiveness,but the degree of financial ethics to enhance the core competitiveness of trust companies and the nature,duration and development of trust company's controlling shareholders related to the stage.Based on the empirical results,this paper proposes ways to improve the financial ethics of trust companies from the macro,meso and micro dimensions for governments and regulators,trust companies and practitioners.