Research On Capital Use Efficiency Of Group Finance Company And Its Influencing Factors

The enterprise group finance company is a non-bank financial institution that provides financial management services for group members for the purpose of strengthening centralized management of group funds and improving the efficiency of group funds.China's first financial company,Dongfeng Motor Finance Co.,Ltd.was established in 1987.After nearly 30 years of development,the number of financial companies in China has grown steadily,the scale has continued to expand,the types of business have become more diverse,the quality of assets has improved significantly,and the profitability has gradually improved.It has become an indispensable part of China's non-bank financial institution system.As a non-bank financial institution with the closest connection with the real economy,the finance company has made important contributions to promoting the integration of industry and finance and improving the competitiveness of enterprises.Through centralized management of funds,the finance company improves the efficiency of capital use,reduces the internal transaction costs and financing costs of the entire group,and relieves the problem of financing difficulties and financing of member companies to a certain extent.In 2004,the “Regulations on the Administration of Financial Groups of Enterprise Groups” issued by the China Banking Regulatory Commission will further improve the efficiency of the use of funds of enterprise groups as the fundamental goal of the operation of financial companies.Therefore,the in-depth study of the efficiency of the use of funds by financial companies has important practical significance.In recent years,domestic and foreign research on financial companies has focused on the functions,risk control and management models of financial companies,while the research on the efficiency of financial companies' use of funds is relatively rare.Therefore,this paper quantitatively analyzes the efficiency of financial company's use of funds through DEA method,and analyzes its influencing factors through Tobit model,in order to make up for the shortage of theoretical research on financial companies.Based on the analysis of the development status of financial companies,this paper uses DEA method to empirically analyze the capital use efficiency of 211 financial companies in China from 2015 to 2017,and selects the financial company by measuring the use efficiency of sample financial companies as the dependent variable.The six internal and external factors as the independent variables,through the Tobit model based on panel data,further analyze the impact of factors such as diversification,capital concentration and age on the use efficiency of financial companies.Take YD Group Finance Company as an example to analyze the current situation of fund management and the reasons for the inefficient use of funds.The research results show that,overall,the financial efficiency of China's financial companies is low,and the efficiency of financial companies above 50% is lower than the industry average.Only one financial company's fund use efficiency has been relatively effective for three consecutive years,indicating that the efficiency of fund use of China's financial companies is at a low level,and the efficiency of capital use of most financial companies is relatively ineffective.Among the selected influencing factors,the company's establishment period and company size have a significant positive impact on the financial company's capital use efficiency.Per capita GDP and current ratio have a negative impact on the efficiency of the financial company's use of funds,while diversification The strategy has no significant impact on the efficiency of capital use.During the case study of YD Group Finance Company,it was found that the reason why the YD Group Finance Company's capital use efficiency is low is mainly affected by the scale efficiency.For the newly established finance company,the asset scale is small and the business scope is relatively narrow.It is necessary to strengthen the collection of funds,while actively carrying out business innovation and expanding sources of financing.Lack of professional talents and inadequate information systems are also important reasons for the inefficiency of YD Group funds.