The Efficiency Evaluation And Influence Factors Analysis Of Trust Company Based On DEA Model

As one of the four financial pillars in economic sphere. In terms of asset size,economic profit and social influence, there is a large gap between the trust industryand the banking, insurance, securities industry. Therefore, in order to promote rapidand healthy development of trust industry in the fierce market competitionenvironment. Consequently, it is priority to explore ways to improve the efficiencyof Chinese trust companies and take measures by evaluating of the efficiency of ourtrust companies.In this paper, Data Envelopment Analysis (DEA) will be used to analyze theefficiency of 27 trust companies in the years of 2005 to 2010.In addition, we test thestability of the data results by using the Spearman correlation coefficient. Based onthe size of the trust asset, 27 trust companies are divided into three scale rating.There are 5 small trust companies, 17 medium-sized trusts and five trust large trustcompanies. The empirical results show that between 2005 and 2010 the technicalefficiency and scale efficiency of 27 trust companies changed in range. In 2005 and2006, the industry average efficiency was on the high level, and the averageefficiency in 2008 reached the lowest point of the past four years. However, from theyear 2009 to 2010 the technical efficiency and scale efficiency of Chinese trustcompany shows an increasing tendency .In addition, for different asset size levels oftrust companies, their levels of efficiency are similar. Risk-resisting ability of thelarge trust companies is also weak. Based on the above analysis, This paper mainly selected some indicators in sizeof the company, Debt Management and other four indicators to analyze its impact ontrust companies operational efficiency. The regression results show that the threefactors of the health of the assets, company size and business growth of trustcompanies have a positive impact on technical efficiency, pure technical efficiencyand scale efficiency. But the regression coefficients of the indicators of company sizeare too small, which indicates that this indicator has a very small impact on technicalefficiency. At last, the article gives advice on enhancing the efficiency of China trustindustry.