The Empirical Research Of Market Structure’s Effect On Performance Of Trust Industry In China

Trust industry has reached a certain scale after three years of development benefitfrom the country’s institutional advantages, flexible business model, sustained economicgrowth and the deepening of market reforms and other factors. The trust assets have morethan the size of the insurance industry, becoming second to the banking financial sector forthe first time in2012. But compared with the United States, Japan and other developedcountries, China’s trust industry coverage is also very small, the sustainability of thebusiness model has not yet formed, new product development capacity needs to bestrengthened, the relevant regulation is subject to further refinement perfect, these will beinvolved in the trust industry in the future development direction and have a certainimpact on the improvement of market structure and the enhancement of marketperformance.In this paper, we first analyze the reality of market structure and performance in ourcountry’s trust industry based on the relevant market structure and market performancetheory. Then we select twenty-five trust companies as representatives of the whole country,and use factor analysis method to evaluate the market performance of trust companies.Then we select the appropriate measurement of market structure and market performanceindicators in trust industry, establishing multiple linear regression to study marketstructure impact on market performance in trust industry and exploring market structure ofthe trust industry in line with current market hypothesis and finding the greater marketstructure factors that have much impact on the market performance in trust industry. Thelast, we give reasonable suggestions to enhance core competitiveness and improve themarket performance and stable and healthy development in trust industry based on resultsof the empirical trust industry in our country in the future.In this paper, the empirical study found that: greater market share will improve thelevel of performance of trust industry in China; the quality of staff and the level of education to some extent determines product innovation and business developmentcapabilities of trust industry; there is a negative correlation between asset-liability ratioand performance, but the impact is not obvious, trust company’s own investmentmanagement and risk management ability may need time to get outside recognition; as themacroeconomic factors to performance, the annual average market lending rates have ahigher impact on the performance at a higher level of significance.