Performance And Social Welfare Impact Of Micro-credit Companies

For a long time,the development of China's rural financial system is weak,and rural financial services are insufficient,which has made it difficult for farmers to borrow loans and increase their income.In recent years,the Chinese government has vigorously deepened the reform of the rural financial system,and gradually reduced the barriers to entry for rural financial markets.In 2008,the pilot of Micro-credit companies in the country was launched and developed rapidly,gradually becoming a new force in China's rural financial system.After 10 years of development,the operating situations of Micro-credit companies have been very different.Some Micro-credit companies have been operated well and have achieved various degree of success.However,some Micro-credit companies have fallen into operational difficulties,and even have been bankrupted.This has led to extensive discussion and research on influencing factors of Micro-credit companies' performance.Some literatures suggest that the performance of Micro-credit companies is not only affected by internal organizational management,but also closely related to the external financial environment of their operating regions,especially the impact of the development level of regional credit market competition.But does the regional credit market competition level have a positive impact on the performance of Micro-credit companies,or a negative one?And What is the impact mechanism of credit market competition on the performance of Micro-credit companies?For these issues,there are still many disputes in the current research,and no unified conclusion.In view of this,this thesis takes the performance of Micro-credit companies as the research object,analyzes the impact and mechanism of credit market competition on the performance of Micro-credit companies,and re-examine the social performance by examining the social impact of Micro-credit companies from an external perspective.The research on the above issues has important theoretical and practical significance.In terms of theoretical significance,it enriches and expands the research depth and research breadth of the relationship between credit market competition and the performance of Micro-credit companies.To a certain extent,it can supplement the existing research deficiencies and help to further improve the microfinance theory.In terms of practical significance,it is conducive to comprehensively understanding and mastering the relationship between the two,and propose countermeasures to improve the performance of Micro-credit companies and achieve sustainable development,and guide Micro-credit companies to take root in the "three rural" and deepen the county,supplement insufficient supply of traditional rural financial institutions.On occasion of the 10th anniversary of the development of Micro-credit companies,this has strong practical and policy significance for improving China's rural financial services,improving the rural financial system,achieving the fight against poverty and the strategic goal of rural revitalization.The thesis conducts research on both theoretical and empirical aspects.In the theoretical analysis part,on the basis of theoretical combing,it extracts the theoretical analysis framework;takes the heterogeneity of Micro-credit companies and,banking financial institutions as the entry point,and uses the game theory method,constructs a theoretical model,and analyzes the impact of credit market competition on the operating performance of Micro-credit companies.In the empirical analysis section,the panel data of 199 Micro-credit companies in 87 counties(county-level cities)of Shandong Province in 2011-2016 were mainly used for empirical testing.Firstly,using the panel fixed effect model and panel instrument variable method to empirically test the impact of credit market competition on the operating performance and business behavior of Micro-credit companies;Secondly,using the mediation effect analysis method to empirically test the intermediary effect of the microfinance company's business behavior in the performance of credit market competition affecting the performance of Micro-credit companies;Finally,based on the"quasi-natural experiment characteristics" of Miro-credit companies piloting in different counties(county-level cities),the panel data of 87 counties(county-level cities)in Shandong Province from 2008 to 2016 were taken as samples.The difference-in-difference estimation method was used to empirically test the impact of the establishment of Micro-credit companies on farmers' income and consumption levels,and further re-verified the Micro-credit companies' performance from the perspective of externality.The main conclusions of this thesis are as follows:First,the credit market competition has a heterogeneous impact on the performance of Micro-credit companies.Credit market competition has a significant positive impact on the social performance of Micro-credit companies,indicating that in the county with higher level of credit market competition,Micro-credit companies tend to sink their market position and provide more loans to poorer customers.It better complements the lack of services of bank financial institutions,fulfills their social responsibilities,and the higher the social performance.At the same time,the credit market competition level has a significant negative impact on the financial performance of Micro-credit companies,indicating that in the county with higher level of credit market competition,the operating profit of Micro-credit companies is reduced,and the financial performance is lower,which is to some extent.Reduced local social financing costs.Second,credit market competition has significantly affected the business behavior of Micro-credit companies.Credit market competition has significantly affected the business behavior of Micro-credit companies,including loan pricing behavior and loan distribution behavior.Credit market competition has a significant negative impact on the loan interest rate of Micro-credit companies,while credit market competition has a significant positive impact on the proportion of Micro-credit companies' agricultural loans.The median effect test research shows that the Micro-credit company's business behavior has a significant mediating effect on the credit market competition affecting the Micro-credit company's performance.The credit market competition affects the Micro-credit company's loan pricing behavior and loan distribution behavior,and eventually works on the financial performance and social performance of Micro-credit companies.Third,Micro-credit companies have a positive social impact and have boosted farmers' income and consumption levels.The Micro-credit company pilot has a significant positive impact on farmers' income and consumption,and the policy effect has a certain time lag.With the increase of the pilot period of Micro-credit companies,the promotion of farmers' income and consumption gradually emerges and deepen year by year.Based on the existing literature results,this thesis makes continuous improvement and active exploration.It has the following innovations:First,in the research perspective and research theme,the thesis deeply discusses the impact and mechanism of credit market competition on the performance of Micro-credit companies,and conducts empirical analysis based on the perspective of county panel data.The research perspective and research topics are relatively new and unique.Due to the short time for the implementation of Micro-credit companies in China,there is little discussion on this issue in China,and the empirical analysis of the county perspective is scarcer.Based on the panel data of 199 Micro-credit companies in 87 counties of Shandong Province from 2011 to 2016,this thesis has sufficient sample size and innovative analysis from the county micro perspective.Secondly,in the research method,the panel fixed effect model and the instrumental variable method are used to empirically test the effect of credit market competition on the operating performance and business behavior of Micro-credit companies,and use the intermediary effect analysis method to test the microfinance company's business behavior in credit market competition.Affect the mediating effect" in the performance of Micro-credit companies.At the same time,based on the"quasi-natural experiment characteristics" of Micro-credit companies piloting in different counties(county-level cities),the difference in difference estimation method is used to empirically test the social welfare effect of Micro-credit companies on farmers' income and consumption.Thirdly,in terms of research content,it is no longer limited to the perspective of the internal operation and management on the analysis of the factors affecting the performance of Micro-credit companies.Instead,it analyzes from the perspective of external macro financial environment,which expand the breadth and depth of research on the factors affecting the performance of Micro-credit companies to some extent.At the same time,the thesis constructs the theoretical analysis framework of"credit market competition-the operation of Micro-credit companies-the performance of Micro-credit companies-the social welfare impact of Micro-credit companies".And the thesis proposes that the microfinance company should take root in the "three rural issues" and deepen in the county,help China's poverty alleviation and the rural revitalization strategy.