Study On Governance System And Efficiency Of Village Development Mutual Fund Organization

Village development Mutual fund organization is a new kind of cooperative financial organization,which could meet capital demand of farmers.Although the village development mutual fund organizations meet the farmers fund demand and raise farmer's own production development ability,they have appeared the goal deviation,the elite control problems and so on.Study on the solution of these problems cannot do without the governance system of village development mutual fund organization,such as,the internal structure of property rights clearly and concise structure has an important role to improve organizational efficiency.Therefore,it is significant to study the governance system of village development mutual fund organization and its influence on the efficiency.Based on these,firstly,according to the particularity governance system of the village development mutual fund organization,the governance system is expounded from several characteristics of structure of property right;democratic management,micro finance loans,and government support and so on,and put forward the hypothesis on the basis of theories.Secondly,on the basis of reviewing the causes and development process of village development mutual fund organization,we use the "field survey" to investigate governance issues of 160 village development mutual fund organizations of 15 countries of 5 provinces,summarize the characteristics of these governance system problems;thirdly,this paper examines the village development mutual funds organization's technical efficiency and cost efficiency by using DEA and SFA model.Finally,as an important system content of village development mutual fund organization,membership shares,democratic management,micro finance loans and government support measures are given adequate attention among influencing factors.The research findings indicated that:(1)The technical efficiency of most samples of village development mutual fund organizations is still low,and the level of internal management is acceptable,but the size of funds needs further expansion;(2)The cost efficiency of mutual funds organization samples is high and the provincial differences are small;(3)The ratio capital of the Board Shareholding plays a key role on the organization's efficiency;(4)Flexible repayment system can improve the organization's efficiency;(5)The improvement of the loan amount can effectively improve the technical efficiency,but will reduce the cost efficiency;(6)the government's allotment policy have played major role in the organization's efficiency.Compared with the domestic and foreign literatures,this paper has three innovations:Firstly,the governance system is quantified from the perspective of the particularity of village development mutual funds organization.Mutual fund organization is different from general corporate governance;it has multiple stakeholders,has different governance problems,and thus has a special governance system.Therefore,this article contains the organizational particularity four aspects,namely property right system,democratic management way,micro finance loan method as well as government support.Secondly,based on more sample size,the paper studies the technical efficiency and cost efficiency of village development mutual funds organization.First of all,the domestic and foreign research on the efficiency mainly concentrated in the rural cooperative financial organizations,banks,but there is not much research on the nature of poverty alleviation mutual funds organization and limited technical efficiency conclusions about the village development mutual fund organization is not unified;Again,the research on efficiency of village development mutual fund organization focused on technical efficiency,but cost efficiency research does not currently need to be further investigated;Finally,the sample size of village development mutual funds organization on the current study about the efficiency is less,but sample size of this paper is large,we can well overcome the deviation caused by sample data selection.Thirdly,we analyze the impact of governance system of village development mutual fund organization on its efficiency with empirical study.Village development mutual funds organization institutional arrangements have great influence on its efficiency,such as the Council held equity ratio,the loan amount,repayment and the government's support.The conclusions obtained in this paper have the following policy implications in building a sound governance system for village development mutual fund organization in rural areas and improving the efficiency of it: first,because the low technical efficiency of village development is due to the low efficiency of scale,we can expand organization's scale by increasing farmers' shares,improving government's shareholding and allotment;secondly,adjust the structure of property rights,the introduction of dividend mechanism,reduce member deposits to further tap the potential loan users,improving farmers' self-development ability;finally,improve the guiding role of government,strengthen the supervision of the government.