The Research Of The Correlation Between County Financial Operation And Its Environment In Hunan Province

County finance as a major power to promote the county’s economic development, its development and environmental quality are inseparable. Economic base, legal environment and credit environment play vital role to improve the efficiency of County Finance. Therefore, the research on relationship between county financial operation and economic base, legal environment and credit environment is very necessary to how to improve the financial operation of the county to promote the county of financial development.This paper first analyzed the interaction mechanism of county financial operation and economic base、credit environment and legal environment from the theory, and use the economic and financial data of88counties in Hunan Province to construct linear regression model through the financial operation and the economic base, financial operations and credit environment, financial operations and legal environment for analyzing the correlation between them, and by calculating coefficient aspects of credit environment, legal environment and financial operation further explore its relevance. Finally, based on the presence of several county financial issues, we analyze the empirical results.Through a series of empirical research, the paper draw the following conclusions: the three aspects of environment-economic base, credit environment and legal environment and county financial operations are positively correlated, that is, the better economic base、credit environment and legal environment, the better county financial operation. However, the correlation level between three aspects of environment and financial operation are different. Among them, the economic foundation has the greatest impact on the County financial operation, followed by the environmental impact of the credit, and impact by legal environment is relatively small. The paper found that the impact environment on all aspects of county financial is different:the degree of financial development in the county based on county economy and credit environment is closely related; legal environment affect the risk of financial institutions in the county, the focus of the prevention of financial risks is to improve the legal environment, and improve the legal environment is the focus of increasing enforcement; County profitability of financial institutions associated with the environment is the least. Based on the above findings, this article from the perspective of improving environment to promote the financial development of the county, make recommendations accordingly.