Factors Influencing Member’s Investment Will Of Rural Mutual Fund Organizations

In recent years, with the rural financial reform deepening, among the process of economic transition in rural areas, several rural financial organizations are coming forth constantly. The Rural Mutual Fund Organization (RMFO) founded as the farmer’s autonomy and self management, and the organizations plays a very important role in rural finance.According to the spirit of Central Committee and Jiangsu provincial Party committee continuously for several NO.1Document, Yancheng City which belong to Jiangsu Province took the lead to launch the pilot work of RMFO. In a short span of3years, the number of RMFO, are raising from18to the current127. Absorbed128,900farmers into organizations and amount of1.296billion RMB fund, loaned1.039billion RMB. Accumulative total loans mutual fund3.7billion RMB.The previous study on RMFO, are generally from the macro level analysis about RMFO institutional research, and lack of the research from microcosmic level. However, as the core of RMFO, the growing of organization inevitably cannot without farmers’join and investment. Therefore, the research of microcosmic level is important too, so how the farmers’investment will? How many factors influenced it? The RMFO sponsors or leaders, as a founder of new institution and organization, their behavior and evaluation influenced farmers’investment will and how about the relation between them? Answers to these questions are conductive to understand the intention of farmers’investment, but also is beneficial to the correct idea of farmer organization leaders and their relations. Thinking about RMFO practice achievements and further expanded the scope of practice is of great significance. From the aspect of farmers’ trust on the institutional entrepreneur, with the research of Jiangsu province Yancheng City, Sheyang County, Huang Sha Gang mutual cooperative, ask312local farmers to finish the research. Try to analysis the performance of the trust farmer to entrepreneurs, answer the questions that the relationship between the trust and investment will.RMFO sponsors and leaders with obviously "institutional entrepreneur" characteristics, they had a strong innovation consciousness, and know how to build, change and develop new institution and organizations. Most of them are rural entrepreneurs and rural elites, they have very strong appeal and influence in local place, even to the farmers’ attendance and investment. Farmer have little personal asset, is a typical "risk averse". If they chose investment or not. firstly, they would consider the capital security. Attribute to limitations of the rural areas, farmers and institutional entrepreneurs must have been known each other before. Thus, the trust of the farmer to institutional entrepreneur will influence the joining and investment intention. This paper interprets the relationship between the trust and the investment will, based on it, put forward three points of the trust: capacity, reputation and relationship factors. And based on the TPB theory analysis frame, analyze the relationship between trust of farmer to institutional entrepreneur and investment intentions.Based on the theoretical analysis, at the part of empirical study to construct ordered Logistic and Bilogistic model to analyze the investment will, the results showed that: RMFO evaluation, management capability evaluation, moral evaluation, prestige evaluation, and frequency evaluation of institutional entrepreneur communication. These five variables significantly influence farmer’s investment will. At the same time, according to the different investment level classification, we found that different investment amount farmers have different influence factors. Results showed that: profitability evaluation, the relationship with institutional entrepreneurs and work in the organization or not will impact significantly; and the frequency of institutional entrepreneur communication will influence investment will of "general farmer".Based on the research results, this paper puts forward three suggestion to promote the development of RMFO:first, improve the system of entrepreneurial management capacity; second, supervise entrepreneurs to develop good moral character; third, establishing stable cooperation foundation.