A Study On The Effect Of Mutual Assistance Under The Combination Of Capital And Industry

As a rapidly developing agricultural country,the development of rural economy is very important.The problem of farmers,agriculture and rural areas is the focus of the government and the society.The market economy develop without the support of finance,even the improvement of farmers' income?rural economic development and the construction of a harmonious society need the rural financial support as well.But at present,the state-owned commercial banks withdraw from the rural areas in the aspects of business orientation and service objects.Due to information asymmetry,market diversification and the lack of effective collateral,commercial organizations invest less funding in rural areas.As the main force of supporting agriculture,the rural credit cooperatives gradually developed to the direction of commercial Banks.Rural formal financial institutions have been unable to meet the growth of farmers' income and rural economic development.The issues such as imbalance of supply and demand in rural areas?the shortage of funds and the difficulty of farmers' financing are getting more and more serious.The mutual fund organization has become a method to solve the rural finance credit constraints.It is a kind of induced institutional transition.It is also a kind of financial innovation,which is made by farmers in the principle of mutual assistance,mutual benefit,voluntary,and democracy.To a certain extent,it alleviates the contradiction between the supply and demand in rural areas,and effectively makes up for the deficiency of the rural financial system.All those have played a huge role in promoting the development of farmers' investment,consumption and rural economy.Under the guidance and promotion of the government policy,the mutual fund organization has developed rapidly.However during the development has also been a lot of difficulties.In general is faced with two problems:First is to keep the co-finance functions do not occur alienation,in order to maintain mutual cooperation and give full play to the advantages of the adaptive system.The second is to is realize the healthy and sustainable development.The large numbers of practical experience shows that the mutual fund organization's financing arrangements reflect the characteristics of mutual assistance and the sustainability.So the designing of the fund circulation in the mutual fund organization is worth to explore.In the course of the investigation we found that in the endogenous mutual funds organization has three kinds of product design.They are the product designs for industrial development,life,and entrepreneurship.Attention to these three kinds of product design is not the same.The first product design concerns a higher degree.The feature of the product design which under the combination of capital and industry is that mutual funds and industrial production links in order to improve the coupling between the organization and members.So why this product design will lead to a higher concern and the effect of the operation?According to the transaction cost theory,the design of different property rights arrangement corresponds to different performance,which means that different product design has a different impact on the organization's cost and revenue.To clarify the operation effect of this product design which the capital and industry combined in the exogenous mutual fund organization,this study analyzes it based on the transaction cost theory and contract theory from the point of view of accounting.First we try to describe the concept of mutual fund organization,product design and the combination of capital and industry.Second we aim to explore the research objectives from the perspective of product design based on summarizing the existing literature.Then we propose analytical framework and form a research hypothesis.On the basis of this,we construct a quantitative index of corresponding variables,and use the obtained sample panel data to describe those variables.In this process,we found that the product design which under the combination of capital and industry has significant differences in transaction costs and default rates with other product designs.This product design which based on the coupling reduces the default rate and improves the stability of the contract,also save the transaction cost.In terms of transaction cost and contract stability,this product design has better operation effect.Based on the descriptive statistics of variables,we further empirically study the input-output efficiency of this product design.Empirical results show that:the product design which under the combination of capital and industry has played a certain cooperative effect on the basis of coupling,and has a positive correlation between the improvements of the performance of the organization.However the input-output efficiency of the product design which under the combination of capital and industry is higher than others.That is,in a unit of investment,the output contributions of the product design which under the combination of capital and industry is higher than the others.From the perspective of product design,this paper analyzes the operation effect of the product design which is under the agreement between capital and industry,and points out the advantages existing in the design of this kind of product.In this regard,the government should recognize the benefit of this kind of product design,clear policy orientation and promote the development timely.All this can help to achieve the sustainable development of cooperative finance's function.