The Efficiency Evaluation And Influence Factors Analysis Of Trust Company Based On SFA And RFA

Banking, securities industry, insurance industry, and trust industry, which is the only to simultaneously span the money market, the capital market, and the industry market, are the four pillars in economic sphere. Consequently, this dissertation will first discuss the efficiency of China trust company, and meanwhile it analyses the main factors which affect the development of trust company with the case study. This dissertation plays a substantial role both in theory and in practice because it helps to deepen the reform of China trust company, and to improve efficiency and profitability of the trust company.Firstly, this dissertation defines what the connotation of the efficiency of the trust is, and it analyses by comparison the nonparametric and parametric methods of measuring trust efficiency, and it further shows the function form of measuring it. This research has been based on the selected 44 trust companies as samples from the whole country, and the registered capital, the number of people, and the total assets as input variables, and selected income and net margin as output variables from the year 2006 to 2008, and the case study applies the data envelope analysis (DEA) method and empirical study on the technical efficiency, scale efficiency, and cost efficiency. The results have indicated that from the year 2006 to 2008 the technical efficiency and scale efficiency of Chinese trust company shows a decrease tendency as a whole, and it urgently needs to improve efficiency by optimizing the input-output structure and the scale of company; but the cost efficiency shows an increasing tendency as a whole, which proves the situation of the cost and output of trust company is quite well.Secondly, it studies the profit efficiency of China trust company by using stochastic frontier analysis (SFA) method. The result indicates that profit efficiency of China trust company also shows a decrease tendency in general. It mainly relates to the excessively pursuit of expanding the scale of trust and decreasing the rate of pay of trust in recently years. Besides, from effect of the background of stockers on the profit efficiency in trust company, the profit efficiency of the trust companies that are held by TOP500 in China or financial enterprises is higher. It can be argued that the background of stockholders is the key factor. Finally, analyze comprehensively and systematically the factors that influence trust efficiency through the three main respects, the macro factor, the industry factor, and the microscopic factor. And with the net profitability indicators being the dependent variable and the variable like trust scale, degree of innovation, stability, asset allocation as well as the corporate governance chosen respectively as the independent variable, the importance of each variable are calculate in the Random forest algorithm (RFA) method, and the relative effect of their importance on the profitability analyzed. The analysis showed that the main factors that affect the net profit of China trust company are the scale and the stability while the asset allocation, the degree of innovation, and the corporate governance have little effect on the efficiency. At last, the article gives advice on enhancing the efficiency of China trust industry from three levels, the macro, the industry, and the microscopic.