Study On The Governance Mechanism Of Village Development Mutual Fund And Its Impact On Financial Performance

In October 2017,the Party's Nineteenth National Congress resolutely won the fight against poverty and mobilized the entire party and the country as a whole.We insisted on precise poverty alleviation and accurate poverty alleviation to ensure that the poor in rural areas will become free from poverty by the current standards of 2020.All impoverished counties will take caps to solve the overall regional poverty.They will really get out of poverty.By the end of 2017,China's poor population has reduced to 30 million 460 thousand.The incidence of poverty in China has dropped to 3.1%.However,the more difficult it is to get out of poverty,the poverty alleviation work is still a long way off.In order to achieve a comprehensive poverty alleviation,it is necessary to carry out a lot of measures.Financial poverty alleviation is one of the important means to realize the accurate poverty alleviation in our country.It has played a great effect in the work of poverty alleviation.Since 2006,China has promulgated the "Circular on pilot project of establishing village development mutual fund "(No.35 [2006]),incorporating " village development mutual fund " into the financial poverty alleviation system.It's opening up a new path of our country's financial poverty alleviation work.It has achieved remarkable results.Based on the survey data of Inner Mongolia in 2016,this paper takes 74 mutual funds as the research object and uses the 2014-2015 data to study the governance mechanism and financial situation of the mutual fund.The comprehensive financial performance indicators are constructed by factor analysis,and empirical analysis is conducted using the regression model to study the impact of its governance mechanism on financial performance.The survey results show that mutual funds can use their income to achieve the sustainable development of the organization's finances,but there are also problems such as the slow growth of the scale of mutual funds,the imperfect management system for remuneration of managers,and the highly overlapping position of managerial posts and village cadres.The empirical results show that the internal governance factors such as the size of mutual fund management,the proportion of women in management,the age of the director and the salary level of the director will have a positive effect on financial performance.These factors can promote the financial performance of mutual fund.Based on research and empirical results,this paper proposes some policy suggestions such as expanding the financing channels for mutual fund,balancing social equity,establishing a reasonable payment system of mutual fund,increasing the number of management and the proportion of women,and appropriately separating mutual fund management system from village administrative system.It has provided new ideas for promoting the healthy and sustainable development of village development mutual fund.