Research On The Profitability Of Chinese Trust Company

Trust company is a financial institution aiming at profitability.Profitability is an important prerequisite for its existence,and it is also a guarantee for sustained operation and stable development.The study of profitability is of great significance to trust companies,regulators,trustees and beneficiaries.This thesis takes 68 trust companies in China from 2010 to 2016 as the research object,and divides the trust companies into three categories according to their profitability: strong,general and weak.Study on the influencing factors of the profitability of trust companies,especially in the presence of trust company profitability and weak problem,the factors which hinder the profitability,put forward corresponding suggestions to improve the general trust and weak profitability.The main contents,research methods and conclusions of the study:First of all,a preliminary analysis of the current situation of the profitability of 68 trust companies in China is carried out,and the factors that affect the profitability of the trust companies are elaborated.Secondly,the existing problems of evaluation index system are analyzed,and on the basis of existing evaluation system,indicators reflecting the characteristics of trust companies are added,and a new evaluation index system is constructed.Finally,the factor analysis method is used to divide the 68 trust companies in China into strong,general and weak three companies according to the strength of profitability.Then,according to the fixed effect redundancy variable likelihood ratio test and Houseman test,we choose the appropriate panel data model,and make panel data regression for the strong,general and weak trust company's sample data.Comparison of three kinds of company empirical results,summed up the advantages factors trust has strong profitability,factors of trust company profitability in general,weak problem,and explain how these factors influence the trust of the company's profitability,aiming at these problems,puts forward corresponding suggestions.Get the following conclusion: trust,strong profitability and talent contribution rate,the proportion of non interest income,fee and commission income accounted for the proportion of investment income,and active management of trust,property trust projects accounted for more than the proportion of the project has a positive correlation with a single class of trust projects accounted for has a negative correlation;there are differences between the relationship between trust and general weak profitability and the explanatory variables,some explanatory variables are significantly correlated,explain the extent of some variables of different sizes.The innovation of this paper is mainly reflected in: First,a new index system of profitability evaluation which includes the characteristics of the trust company has been built,and the key indicators that affect the profitability of the trust companies are found.Two is the advantage of combining factor analysis and panel data model,so that the conclusion is more objective and effective.