The Influence Of The Asset Scale On The Business Performance Of Farmers’ Mutual Funds

Lack of formal financial supply in rural areas,it has created the development of farmers’ mutual funds.Moreover,in essence,the small peasant economy is difficult to adapt to the formal financial services,they need a bridge and link.In this context,farmers’cooperatives came into being.The farmers’ cooperatives meet the requirement of market economy.In recent years,due to the information,efficiency,cost and other advantages,it has continued to increase in volume,continues to expand the scale,cracked the farmers financing problems in a certain extent,open the new path for the development of rural finance.However,the way of rapid expansion does not mean the improvement of the performance of farmers’ funds,and the operating performance is the key factor to determine its long-term development.By combing the research results of domestic and foreign literatures,this paper attempts to study the impact of the asset size of farmers’ mutual funds on business performance based on relevant theories.On the one hand,the farmers Capital Mutual cooperatives operating performance of research has not yet formed a unified conclusion,the evaluation standard and caliber need to be in-depth study;On the other hand,most of the research on the scale of farmers’ mutual funds is limited to the size of the members,and the impact of the size of the assets on the performance of farmers is very few.Therefore,research on the asset scale is how to affect the operating performance,what is the underlying mechanism,analysis of farmers’ cooperatives whether there is reasonable asset size to make optimal business performance,and it is very necessary to test the hypothesis through the empirical,it is also the demand of the development of reality.This article selected farmers capital mutual cooperative as the research object,combined with current situation of different regions between the development of rural financial institutions,select 19 farmers capital mutual cooperative of Yancheng as the research object,study the asset size and performance of farmers Capital Mutual cooperatives,the main content of research include:First,this paper expounds the farmers capital mutual aid agency,asset scale,business performance,related concept;on the basis of literature review of farmers Capital Mutual cooperatives in asset scale,farmers Capital Mutual cooperatives operating performance and the relations between them,put forward the goals of research the relationship between the asset size and performance of farmers Capital Mutual cooperatives.The second is based on modem rural financial market theory,theory of financial cooperation,the production function theory and the theory of scale economy,under the premise of the relationship between asset size and performance,construct the logic analysis framework about farmers Capital Mutual cooperatives asset size impact on business performance,and put forward the hypothesis of this study.Third is combined with the research hypotheses on the involved variables,constructs the asset size variables and performance variables measure,uses 19 farmers Capital Mutual cooperatives of field survey data,do variables descriptive statistics and correlation analysis.According to the objectives of the study,we divide operating performance into two aspects:financial performance and social performance in the empirical analysis.The first part analyzes the impact of asset size on financial performance,and the second part analyzes the impact of the scale of assets on social performance.On the basis of the analysis of the two parts,the influence of the asset scale of farmers*mutual funds on the operating performance isanalyzed.Finally,this paper draws the following conclusions:the impact of the asset size of farmers’ mutual funds on business performance can be described from two aspects:financial performance and social performance.Financial performance of mutual cooperatives,as the core explanatory variables of the operating performance,the relationship between asset returns and asset size may exist inverted U type.Asset size increases,the rate of return on assets increases,and when the scale of assets increases to a certain level,the rate of return on assets decreased with the asset increase.There is also an inverted U type correlation between the assets size and operating self-sufficiency rate.Operating self-sufficiency rate increases with the increase of the assets size,and when the scale of assets increased to a certain critical value,operating self-sufficiency rate decreased with the increase of the assets size.In the aspect of social performance,the assets size is positively related to the number of borrowers,and the assets size is positively correlated with the amount of per capita loan.This shows that the asset size increased,conducive to increase the number of borrowers,increase the amount of per capita loan,in short,the increase of assets size,conducive to expand its service coverage,improve business performance.On the whole,empirical results basically support the original hypothesis,give a clearer understanding about farmers capital mutual cooperatives asset scale on the performance influence,conducive to the empirical conclusion,give a clearer understanding about farmers capital mutual cooperatives asset scale on the performance influence,conducive to our further thinking about farmers capital mutual cooperatives control and management assets size,so as to more effectively promote business performance improvement of farmers capital mutual cooperatives.In the countermeasure suggestions to improve operating performance of farmers capital mutual cooperatives,maintaining the stable and healthy development,this paper puts forward the following several related policy proposals:reasonable expansion asset scale of farmers capital mutual cooperatives;attention to the upper of asset size about farmers capital mutual cooperatives;optimize the asset structure,pay attention to risk management of asset business.