Research On The Efficiency Of Chinese Trust Company And Influence Factors Based On SFA Model

Trust is to accept other people’s principal, help others to take care of the property. It is a special kind of property management system and the legal behavior, is also a kind of financial system.Along with our country’s economic development and the deepening of financial system reform, the Trust Companies and the Banks, the Insurance Companies, the Securities Companies together constitute the four pillars of modern financial system in our country. Coupled with the special institutional advantages in trust and national policies and improve gradually to the trust and recognition from all walks of life, trust company entered a rapid development track.But behind the fast development, the efficiency of the trust company has not been corresponding increase.How to improve the efficiency of the trust company and enhance the comprehensive competitiveness of the trust company, has become the key problem of the research of experts and scholars.This article attempts from the perspective of multiple input-output to research the non allocation efficiency of the trust, and to find the factors that influence the efficiency and then puts forward corresponding suggestions to improve the efficiency.This article selects the typical 20 securities company’s panel data from 2006 to 2012 as sample.Firstly, this article has carried on the theoretical analysis on the efficiency of trust companies, including the definition of the trust, the definition of efficiency and the introduction to the stochastic frontier method of studying efficiency.Secondly, on the basis of theoretical analysis, based on the stochastic production frontier model, this article uses the Frontier software to carry out the empirical analysis on the efficiency of the sample company.The result shows that: first, the total assets has a greater impact on the total profit than the input index of the number of employees,explains the trust industry’s reliance on asset investment;Second,the efficiency of the trust company in China has the trend of steadily rising in the time dimension, and the overall efficiency value is relatively high;Third,there are obvious differences in the efficiency of China’s trust companies in the spatial dimension, suggests that the development of the trust companies in our country is still not balanced and part of the trust companies still have room to improve efficiency.Thirdly, by using the method of multivariate linear regression on the factors of influencing the efficiency of the trust company has carried on the empirical analysis, the result shows that:the efficiency of the Chinese trust companies has no direct relationship with the equity concentration and the business structure;While the efficiency of the trust companies is influenced by four factors of the company scale, the degree of education, operating capacity and profitability is very significant, And only the scale of the company and the trust company efficiency present negative correlation.This means that the excessive expansion of the scale of the trust industry in our country in recent years has adverse effect on the efficiency of trust companies.Finally,this paper puts forward the corresponding countermeasure proposals targeted to improve the efficiency of the trust company based on the empirical results,including:to control the reasonable size of the company, to pay attention to the cultivation of talents, to enhance the capacity of operating,to improve profitability,to reduce the ownership concentration degree, to strengthen the risk control ability of these aspects of policy recommendations.