Management Efficiency Analysis Of Chinese Trust Industry Based On MC-DEA Model

Financial Trust business had started right on track in china since 2004, however, because of the financial crisis in global capital markets, the slow development of Trust industry was influenced in 2008 The financial crisis brought not only challenges, but also brought the unprecedented development opportunity to Chinese financial Trust simultaneously. Now the global financial market is slowly recovery, Banks, securities, insurance, and other financial tools play a very important role for economic recovery. When compared with Banks, securities, and other financial tools, trust has many advantages in the process of economic recovery. The trust is not only a generation of intermediary organizations as "entrusted financial management", it can still greater ease existing antinomy between supply and demand for capital financing, also, it is a new type of investment and financing ways. However, the research on trust company operating performance and management efficiency in domestic at present is less, the existing literature mainly focused on the trust system, the operation mode and aspects of real estate trusts. Therefore, this paper uses the current relatively mature empirical analysis method of financial institutions to study trust companies operating efficiency and management efficiency, analyzes the problems existing in the development of Chinese Trust business, and provides with referential significance suggestion to improve the operation efficiency and trust companies target-oriented management efficiency.This paper firstly summarized efficiency research methods, bank efficiency study and the domestic from foreign literature research about trust efficiency in order to introduce the main research contents of this paper which is using three stages of DEA model to empirical research on the operation efficiency and management efficiency about 20 trust companies from 2004 to 2008 based on the indexes simulated by Monte Carlo. Secondly, this paper illustrates the efficiency theory, and points out that the main measurement methods for efficiency study are a parametric and nonparametric. Then, the DEA model parametric method were introduced in detail in this paper which in order to explain output–oriented DEA method is more suitable for measuring the efficiency of trust companies in China. Any theory researches are based on certain assumptions, so this paper puts forward some assumptions before an empirical study. Through the first stage DEA model, we estimate the first stage TE, then, this paper using SFA model to eliminate environment variables and random errors what impact the empirical analysis, finally, using the third-stage DEA model estimates the real efficiency called the third TE. By removing influence of environment variables to management efficiency and getting the difference between TE1 and TE3, we may safely draw the business management efficiency. Based comprehensive and the comparative analysis of the empirical result, we may find that the current problems and shortages existing in the development of Trust industries, and put forward suggestions to improve and perfect the management methods existing in the trust companies.