Study On Mutual Relation And Application Between Farmers' Financial Cooperation Behaviors And Property System Of Rural Credit Cooperatives

Reform of rural credit cooperatives has been the difficulties and focuses of financial reform in rural areas, especially on how to combine the actual situation in rural areas and farmers'actual need to complete the new-round reform, establish clear property rights and improve the internal governance structure. In the new-round of property rights system reform of rural credit cooperatives, farmers'financial cooperation behavior has always been neglected. Ignorance of farmers'financial cooperation behavior and exclusion of farmers involved in rural financial reform has been problems in theory and practice. Therefore we need to study this problem on behalf of farmers who are the direct beneficiaries. The Study of farmers'financial cooperation behavior from both theoretical and empirical perspectives, not only provided theoretical basis and practice basis for a comprehensive assessment of reform performance, but also provided theoretical and empirical supports for further reform.Firstly, this paper makes a simple review of all previous rural credit cooperatives'reforms and assesses the effectiveness of this reform from both sides. Although the figures show that rural credit cooperatives have made great progress both in asset quality and profitability in recent years. But there is still a big gap comparing with other domestic financial institutions. Reform of rural credit cooperatives doesn't achieve the expected results.Secondly, from the perspective of institutional economics and game theory, the internal logic relationship between farmers'financial cooperation behaviors and rural credit cooperatives'property rights reform is studied. The reform is mandatory system changes, which ignores farmers'financial needs and financial cooperation desire, forcing farmers to be isolated from reform. Demonstrated by two game models, the central government can't represent farmers'interest under current reform . We need a target variable to restrain the behavior of local government and incorporate it into excitation function.Thirdly, this essay studies famers'financial cooperation behaviors through SEM. The SEM model contains five structural variables, namely cooperation, personality, status, lending and satisfaction. Each variable has a number of observed variables. Using filed survey data empirical analysis of farmers'financial cooperation behaviors, we find that:(1) more than half of farmers see the rural credit cooperatives as their own financial institutions, but the number of farmers who buy shares is few;(2) there is a big difference among financial needs of farmers in different areas;(3)relative to farmers own characteristics, external factors has a greater influence on farmers cooperation behaviors;(4)the main reason for farmers without shares is that farmers don't understand relevant information.Fourthly, based on distinctive features between joint-stock and cooperative systems ,the characteristics of three property rights systems has been described here ,which incorporate farmers'financial cooperation behaviors, sustainable development of rural cooperatives, service for"issues concerning agriculture, countryside and farmers"and support local economic development into the decision model of the rural credit cooperatives Property through AHP. Taking a developed area and a less developed area as examples to point out that the emphases of needs are different in different regions , and the suitable property systems are also different. Finally, based on both theoretical and empirical studies, this paper raises policy recommendations for deepen reform. That includes: (1) paying attention to farmers'financial cooperation behaviors; (2) the property system reform based on farmer financial cooperation behaviors; (3) adhering to the principle of adaptation to local conditions;(4) Upgrading product service system of rural credit cooperatives. At present, there is few literature research of rural credit cooperatives combining with farmers'cooperation behaviors at home and broad. So the topic of this paper is innovative in itself which is highly exploratory. The paper uses SEM to establish farmers'cooperation behaviors model and obtain first-hand information through surveys. This is the methodology innovation of this paper.