Study On The Operating Efficiency And Influencing Factors Of China Trust Companies

As a new emerging investment channels, the trust industry got much attention with its asset management scale was more than 10 trillion RMB in 2013, which even exceeded insurance industry and became the second major financial sub sectors. However, with double challenges, the macroeconomic situation is downturning and intensifying market competition in generalized asset management industry, the trust industry started its new stage for transformation and development. On the stage of new historical development, The trust companies face many challenges, such as slow growth, declining sales, increasing risk cases. Only if trust companies enhance its core competitiveness, investors’ benefit can be more security and financial system can be more stability. To trust companies, operating efficiency is the most import embodiment of its core competitiveness. The improvement of management level matter against trust companies future.First of all, This article reviews many related literatures, such as efficiency measurement method, study on the efficiency of financial institution, study on the efficiency of trust company. And then start the argument about the content and measure index system of management efficiency of trust company. Secondly, using the DEA-Malmquist index method to measure the operating efficiency of 51 trust companies in China in 2009-2014. The results show that The core competitiveness of China’s trust industry is weak, and the ability to resist risks is poor, which is vulnerable to external environmental factors. In the long term, the backward of the trust companies continue to learn the successful experience of the Progressive Corp, resulting in the overall operating efficiency of the trust industry has a convergence rate. Based on this, this article definied influence factors from multi aspects:the basic surface of enterprise, structure of property, risk control level, the geographical influence and so on; and carried on the demonstration for the trust company operating efficiency influence factor by using the sample panel data. Analysis indicates that capital operation ability, company scale, human resource management has a significant positive effect on the improvement of the production efficiency of the company, and there is a light negative correlation between the cost control and the efficiency of trust companies, and factors about corporate governance did not significantly affect the operating efficiency of trust companies. At last, this paper puts forward some opinions on how to improve the overall efficiency of China Trust industry.