| The Enterprise Group Finance Company (hereinafter referred to as finance company) in China is designed to strengthen the centralized management of funds and improve the funds utilization efficiency, it provides financial management services for enterprise group members and belongs to non-bank financial institutions. The first finance company in the world was born in 1878, more than 130 years ago. The western developed countries realized the transformation of industrial capital to financial capital through finance companies. And the first finance company in China, Dongfeng Motor Finance Company was founded in 1987. After nearly 30 years of development, China's finance company has experienced rapid increases in both the number and the size, and the rapid growth of the business strength is also impressive.However, the theoretical research on financial company's operating efficiency both at home and abroad is not much. From the existing literature, foreign scholars' research mainly focuses on the existing reason of the financial company, functions, etc., the research on operating efficiency of financial company is little. Domestic scholars' study mainly focused on the functions and positioning of the finance company, and they also concentrated on centralized management of funds, but pay little attention to the problem of funds utilization efficiency. Therefore, in this paper, the quantitative analysis of funds utilization efficiency by DEA method may make up for the lack of theoretical research on finance company.The contents of the paper:Chapter ? is the introduction. First, the topic background and significance of this paper is presented, and then this chapter defines the research object of this article, Captive-Internal finance company. Then, we introduce the structure of this paper briefly. At last we expound the innovations and shortcomings of this article.In Chapter ?, we introduce the related theories and make a summary and comment on the research literatures about finance companies at home and abroad, then points out the deficiency of the existing research.In the third chapter we give several concepts of DEA related firstly, and then introduce the basic model of DEA and super efficiency DEA model. Finally, based on the decomposition theory of DEA, the funds utilization efficiency (FUE) is decomposed into pure technical efficiency (PTE) and scale efficiency (SE).Chapter ? offers empirical studies on the FUE of the finance companies in China. This chapter begins with the sample and data sources. To ensure the scientificalness, we also make correlation analysis for input and output indicators. Finally, according to the empirical results, we make a detailed analysis on the FUE from different aspects.Chapter ? is typical case analysis. According to the empirical results, Angang Group Finance Company's FUE makes the best performance in all the companies for two consecutive years, so this chapter introduces its development experience as a benchmarking enterprise and enlightenment on other financial companies in our country. Also, a path is given to Wuhan Iron and Steel Group Finance Company to deal with its inefficiency based on Benchmarking theory.Chapter ? gives the conclusions and suggestions for China's finance companies to increase the FUE from the perspective of finance companies and macro-policy.Chapter ? is the concluding remarks. This chapter summarizes our research contents and findings about the FUE of finance companies in our country, and look forward to the future further research.The main research conclusions are as follows:First, we found that although finance company industry's scale accounts for only 1.99% of China's banking industry, its safety, liquidity and profitability indicators are significantly superior to the banking industry; We also find that financial company individual differences are very obvious.Second, generally speaking, the funds utilization efficiency of finance company is low; the number of firms whose funds utilization efficiency are both effective in 2011 and 2012 accounts for only 13% of the sample financial company, and the number lower than the industry average level reach 40, about half of the samples; from the point of efficiency of decomposition, pure technical effective companies are more than scale effective financial company, it shows that the FUE is influenced by the scale efficiency more than pure technical efficiency.Third, the FUE of steel and nonferrous metal industry finance companies has been in a relatively leading position, the reason is that it has a comparative advantage in terms of pure technical efficiency. However, efficiency of electric power industry has been the lowest, and several other industries differ greatly, this paper argues that the funds utilization efficiency is not high has both the pure technical efficiency and scale efficiency reasons. According to geographical terms, the FUE of central finance company is the highest, compared with northeast finance company, eastern and western financial companies on average.The innovative points of this paper:(1) We choose 85 Enterprise Group Finance Companies as samples to evaluate the funds utilization efficiency, expand the sample size, the results are more representative.(2) We study the efficiency differences of financial companies from the perspective of region in a creative way.We also give the super efficiency ranking of finance companies whose FUE are the same, make up for the deficiency of the previous scholars' research.The shortcomings:Due to the limitation of data source, the sample size is still less and lack of timeliness, and we are not able to discuss the FUE dynamic changes confined to the time span. We hope to collect enough data in the future, so that we could expand the sample size and time span, and discuss the dynamic changes. |
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