Empirical Analysis Of Factors Affecting The Profitability Of Our Trust Companies

In recent years,China's trust industry is booming,the assets under management exceed 10 trillion RMB,and becomes the second largest among financial sub sectors.At the same time,there are a lot of realistic problems in the development of trust company,regulation becomes more stringent.How to find the right position,how to enhance profitability,how to overcome the challenge are the problems urgently to be solved in the trust industry.Under the new market environment,it is important for the development of trust company to study which factor influences profitability,how to improve profitability.This paper analyze the above issues based on revelant theory and the actual situation.This paper uses datas selected from the annual reports of 34 trust companies to study the factors affect profitability.This paper use ROE and per capita net income as explained variables to measure profitability,and use business income,numbers of projects,talent utilization,control of cost,quality of assets and total assets of turst company as explanatory variables.Use panel data for multiple linear regression to find out the relationship between explanatory variables and explained variables.Then this paper offers some suggestions to improve profitability of trust companies.