Research On Performance Evaluation Of China's Trust Companies Based On DEA

BackgroundAlong with the deepening of the supply-side reform,The People's Bank of China?Securities Regulatory Commission and Banking Regulatory Commission focused on the financial regulatory policy which can end the falsification of the financial industry and the returning to the real economy.The intensity of various types of de-channeling and de-leveraging measures has increased significantly.The development environment of trust industry is becoming more and more complex,and the competitive landscape of the financial industry is increasingly fierce.As the domestic macro economy enters the stage of high quality development,the demand for funds from various industrial enterprises will be further expanded.The trust industry relies on the flexibility of the system to play the role of integrated financial instruments,and actively guides funds to support industrial restructuring and emerging industry development,effectively supports new demands for the development of the real economy.The trust industry is showing a more optimistic trend on macro data,but in fact,with the trend of financial mixed operation is becoming more and more obvious,the competition in the pan-asset management industry is becoming increasingly fierce.Banks,securities,funds,insurance and other institutions have launched asset management services based on the trust law.The original dividend of the trust has been weakened,and the “substitution effect” and “crowding out effect” of the original business model have become increasingly prominent.Under the strong supervision and strict supervision,the traditional trust business market will be further narrowed,and the revenue contribution of innovative business still needs to be strengthened.Trust companies are facing increasing pressure on business transformation and upgrading,and it is imperative to improve the overall performance of trust companies.Due to the late start of the trust company,most of the research on trust companies is concentrated in individual areas such as equity structure and self-operated business,there has little research on industry performance levels.Therefore,the research on the overall performance level of the national trust industry has very important theoretical and practical significance.PurposeOne of the purposes of this paper is to summarize the relevant literature and theoretical foundations of trust industry performance research at home and abroad,and to explore and analyze the theoretical and practical factors affecting the performance level of trust companies,and provide theoretical support for the trust industry to improve performance levels.The second purpose of this paper is to construct a performance evaluation model suitable for this paper under the framework of trust company performance evaluation system through data envelopment method(DEA).The 68 trust companies in the country are used as samples to quantify various indicators.Out of the theoretical and realistic performance evaluation results,and based on this,put forward corresponding improvement suggestions.I hope that through the analysis of this paper,I will provide theoretical guidance for the research and improvement of the performance level of China's trust industry.Research contextThe main content of this paper is divided into the following six parts:The first chapter is the introduction,which mainly elaborates on the four aspects,namely the research background and significance,research ideas and contents,research methods,main contributions and deficiencies.The purpose of this chapter is introducing the background of the paper writing and the structural framework of this paper,paving the way for the detailed analysis below.The second chapter is the literature review,which is divided into three levels: the literature review of enterprise performance evaluation theory? the literature review of enterprise performance evaluation methods and the literature review of trust company performance evaluation.This paper mainly introduces the classic and latest enterprise performance theory at home and abroad in the theory of enterprise performance evaluation.It is not limited to trust companies.Then,after evaluating the theoretical literature,this paper reviews the research status of the implementation of performance evaluation methods,and lays a foundation for the research.In the performance evaluation part of the trust company,the relevant literatures on the performance research of trust companies at home and abroad are summarized,and also reviewed the current status of domestic and foreign companies in the field of trust company performance research.The last section summarizes the current research status of this chapter,and on this basis,combines the background of the times to propose the research direction of this paper.The third chapter is the theoretical analysis of the performance evaluation of trust companies in China.The first section discusses the theoretical basis of trust company performance evaluation.It believes that principal-agent theory,stakeholder theory,strategic management theory,and input-output theory are the four basic theories that have a significant impact on the performance of trust companies.The second section is the system construction of the performance evaluation of China's trust companies.Under the guidance of literature review and theoretical basis,the system construction of China's trust industry performance evaluation is carried out,including the construction principle,construction dimension and indicator system,and provide reference for the following construction of performance evaluation system based on DEA method.On the basis of the first two sections,the third section discusses the applicability of the DEA method in the performance evaluation of trust companies in China,and combines other major research methods to illustrate the DEA method to satisfy the research in this paper.The last section summarizes the chapter,explains the theoretical basis of the research,the construction of the performance evaluation system and the selected research methods,and provides theoretical support for the analysis of the next chapter.The fourth chapter is a case study of the performance evaluation of 68 trust companies in China based on DEA method.The first section is the overall status of the performance of China's trust companies.It describes the current situation of China's trust companies in terms of asset size,capital investment,profitability and Chinese and foreign trusts as of the end of 2018,and provides a brief introduction to the development of trust companies in China.The second section is based on DEA to build a trust company performance evaluation system,combined with the trust company performance evaluation system constructed in Chapter 3,considering the actual factors,dividing into three parts: framework construction of evaluation index system,specific indicators and data sources,specific data processing.The third section is the specific analysis of DEA-based trust company performance evaluation,taking the data envelopment method(DEA)to study the performance level of 68 trust companies nationwide in 2013-2017,including four parts,namely comprehensive efficiency analysis,scale efficiency analysis,pure technical efficiency analysis and improvement of invalid DEA.The fourth section is the analysis of the performance evaluation results of trust companies.It is divided into static analysis and dynamic analysis.The static analysis is based on the analysis results obtained in the third section.The dynamic analysis adds time window and compares the efficiency between the years at the data input level.The fifth section is a summary of this chapter.It summarizes the analysis contents of the first four sections and paves the way for the fifth chapter.The fifth chapter is to optimize the countermeasures and suggestions for the performance evaluation of China's trust companies.On the one hand,it combines the background of the macro era with the industry background,on the other hand,it combines the conclusions of the fourth chapter,providing relevant and reasonable suggestions for the improvement of the performance of trust companies from the macro level,industry level and company level.The sixth chapter is the research conclusion and research prospect.According to the analysis results in Chapter 4,the conclusions of this paper are drawn,and provides a further direction for the future performance development of trust companies?proposes further development prospects for related research.Research contributionsThe main contributions of this paper are reflected in the following three points:(1)This paper takes the performance research of trust companies as the starting point,studies the problems encountered in the development of the trust industry and the necessity of transformation and development,points out the advantages of the trust industry in the financial industry compared to banks,securities,insurance,funds and other industries that also operate capital.From the perspective of the trust company itself and the external environment,draws more convincing conclusions of how the trust company can improve its performance.(2)This paper studies the performance of 68 trust companies in China from 2013 to 2017 through reasonable system construction and selection of DEA methods,and selects more input and output indicators for qualitative and quantitative research,avoiding the arbitrariness of qualitative research and the limitations of quantitative research,and provides certain guiding significance for the improvement of the performance level of trust companies.(3)From the perspective of literature research,most scholars focus on the research of the trust industry in market positioning,product innovation and risk research.Although there have been many researches on the overall performance of the trust industry in various trust research institutions and related practitioners in recent years.However,most of them are presented to the market in the form of business analysis or annual reports.The number of studies with a time span from 2013 to 2017 and informing professional literature is not significant.This paper focuses on the performance of the trust industry in the above-mentioned years and adopts the DEA research method for comprehensive analysis.It integrates the relatively fragmented performance research in recent years and provides reference for the subsequent trust industry performance research.