Empirical Study Of China Trust Industry Market Structure And Performance Relationship

Late start in China trust industry, the early development of delay compared to other financial industries, until the reform and opening up began after the rapid development of trust business, and once reached a high degree of openness, but the trust market over and opening a series of problems, so Trust the market after a difficult start to straighten out from the pre-clearance of the market is highly decentralized, excessive competition, the stage again at this stage to gradually raise the degree of market concentration, monopoly situation to enhance the development trend, the market structure in China during the change of the Trust how the performance of its development is worthy of our study. Theory of industrial organization on market structure and market performance of the analysis of existing market power of the Harvard School and the efficiency of Chicago School hypothesis and the structure of two major theoretical hypotheses hypothesis that SCP Analysis Paradigm: Structure-Action-Performance, and then also put forward " modified efficient structure hypothesis "&" a mixture of complicity/efficient structure hypothesis "and so on, they are for us to study the market structure and the specific correlation between market performance provides the theoretical basis and research paths.In this paper, the trust industry in China as the research object to the current status of the Trust for the analysis of business development background to industrial organization of the SCP paradigm as the theoretical basis, select the 2005-2009 panel of 22 Trust data as the sample, through the statistical description of the development of China's market structure and performance of the trust, the market share (MS), market concentration (HI) is the market structure of China trust industry measure, return on assets in trust (ROE) For the development of trust business performance measures, the introduction of the value of a trust company operating efficiency EF, trust total asset TA, GDP growth rate of the control variables, the use of econometric model examines the market structure of China trust industry and the intrinsic link between development performance, monopoly or trust business in China shows the degree of competition in the end the number is consistent with the two major theoretical hypotheses evaluated using DEA model to assess measure of operating efficiency of our trust, empirical market structure and the relationship between development performance.Concluded that:(1) Market concentration, market share and return on assets is displayed when a separate regression not significant positive correlation, indicating that market share itself is not entirely good or bad influence on market performance, Harvard School of market power hypothesis and the Chicago School In the efficiency structure hypothesis does not hold in trust business in China.(2) The introduction of the variable trust operating efficiency, market share, efficiency, respectively, return on assets has a significant positive correlation between the trust business in China market that meet the "modified efficient structure hypothesis" theory, a large market share Efficient operation of trust, and trust the performance of its operating efficiency also has important implications.(3) Trust with total assets Return on assets ROE TA has significant positive correlation between the trust business in China market shows a certain degree of economies of scale. Finally, according to the actual market situation of the Trust, combined with the development of the foreign trust industry is given appropriate policy recommendations.