Social Performance And The Implementation Mechanism Of Microcredit Companies

Micro-credit company specialize in micro-credit financial institutions, due to its special policy mission and internal financial ethics, the contents of its social performance and evaluation methods are different from the general business or financial institution. The industry of micro-credit companies has expanded rapidly since micro-credit company pilot policy carried out in 2008. Institutional development is also showing a more complex features, and micro-credit company’s social performance receives much more concern.Related documents show that the company’s social performance of microfinance has comprehensive influences on its role in promoting economic and financial development, as well as on the impact of employment, poverty alleviation, distribution and other aspects of social welfare; at the same time. This paper researched the social performance and its implementation theory of micro-credit companies; on one hand, we analyzed the social performance of micro-credit companies to inspect the dimensions and perspectives; on the other hand, we demonstrated the consistency among the organizational objectives, the development dimension of inclusive finance and social objectives of micro-credit companies. Then this article proposed two inferences:micro-credit companies can achieve their social performance, and it is achieved by the development of inclusive finance, which is reflected by the increase of inclusive characteristic in financial system. Meanwhile, we used game theory to prove the coexistence and harmonious development between micro-credit companies and traditional financial institutions, and its long-term and stable basis of social development can be achieved by promoting inclusive financial performance.Secondly, we use the data from 17 cities in Shandong Province, approaching from three angles to test the social performance of micro-credit companies. These are: promoting rural economic development, narrowing the income gap between urban and rural areas, and reducing the social cost of financing. In order to take other aspects of science and technology, infrastructure and education into account, the ideas of UN Human Development Index Construction (HDI) will also be reflected by normalization of all aspects of social performance indicators, and we set it as a sample to analyze the social performance of micro-credit companies.On the basis of validating the micro-credit companies can achieve social performance, we empirically analyzed the practice mechanism of micro-credit companies that can achieve social performance, testing the intermediary effect of inclusive finance for micro-credit companies to achieve social performance mechanisms. Before testing, we need a basic work which is the quantitative measure for the development of inclusive finance. By drawing on the practice of human development index, we build inclusive financial index system and the preparation of an inclusive financial development index by quantitatively measuring and analyzing the inclusive finance development in 17 cities of Shandong province from year of 2009 to 2015.On this basis, we further use Sobel test model of inclusive financial intermediary position in the micro-credit companies to achieve social performance mechanism of empirical analysis. Test results well supported the above proposals.Again, we used built samples from three connotation of inclusive financial development, starting from depth discussions on how micro-credit companies promote the inclusive financial development. The relevant empirical results showed that micro-credit companies have significant impact on improving financial services coverage and other aspects. Finally, we summarized and sorted out the relevant research results to form the conclusions of this study, and we also propose models for future development positioning and path of micro-credit companies.