Empirical Research On The Factors Influencing The Profitability Of Auto Finance Companies

In recent years,with the rapid development of domestic and international economy and the automobile industry,as a typical capital intensive enterprise,the demand for capital in various aspects of automobile,such as production,circulation and consumption,is very large.With the growing maturity of the financial industry,automobile finance has also obtained corresponding development,and related enterprises have emerged as the times require,accounting for both consumption and circulation At the same time,it is also blocked by external factors in the field of consumption and circulation,and its risks are also expanding.China’s auto financial market is dominated by auto finance companies,commercial banks and auto manufacturers’ financial companies.With the financial leasing companies,car rental companies and Internet financial companies involved in a wide range of them,coupled with the thirdparty payment,small loans,pawn,guarantee and so on are also actively involved in the automobile financial activities,which makes the traditional automobile financial market subject face great challenges and pressure.Under various pressures,auto finance companies need to further innovate and deepen their own management,so as to occupy an advantageous position in the field of auto finance.At the same time,auto finance companies are different from traditional financial enterprises.They have their own distinct characteristics,and the business scope of business around cars is also different from other enterprises.Therefore,the research on the profitability of auto finance can have a certain understanding of the current situation of China’s auto finance industry.Second,through the analysis of the elements of the profitability of auto finance,we can take Brandive measures to solve problems,improve the income level of enterprises and enhance the core competitiveness of enterprises,which can provide corresponding basis support for the company to formulate strategic planning,optimize resource allocation,implement customer pricing and carry out performance appraisalBased on the research status of domestic and foreign scholars on auto finance,this paper first selects the return on net assets,return on assets,return on main business assets and logarithm of total assets as the index variables of profitability,then uses the principal component analysis method to analyze the above variables,eliminate overlapping information,and select roe,roe and roe according to the principle that the cumulative variance contribution rate is greater than or equal to 85% ROA and RCRA to construct a comprehensive index representing the profitability of the company.Then analyze the possible factors affecting the efficiency index of auto financing companies according to the four dimensions of the balanced scorecard,and then use the Delphi method to obtain the final index set.According to the index system determined by the Delphi method and combined with the industry situation of auto financing companies,select auto sales volume,operating income,non-performing loans,brand,automatic approval rate and employees as important influencing factors,Then,based on the existing research results,drawing on the analysis framework of Wang Ruixue and Zhang Qiaoyun,and based on the relevant enterprise growth and default loss rate,the model of the correlation between profitability and enterprise growth and non-performing loan rate is designed,and all 25 domestic auto finance companies from 2011 to 2020 are empirically studied to analyze the relationship between various factors affecting profitability,Finally,it is found that: enterprise growth has a significant positive impact on profitability;Customer satisfaction has a significant positive impact on profitability;The non-performing loan ratio has a significant negative impact on profitability;From the perspective of regions with different economic development levels,compared with regions with high economic development level and regions with low economic development level,the non-performing loan rate has a more significant positive impact on the profitability of auto finance companies in regions with high economic development level.After in-depth analysis of the impact caused by the nature of property rights,it is found that the nature of enterprises has a positive regulatory effect on the non-performing loan rate and enterprise profitability,that is,compared with non-state-owned enterprises,the non-performing loan rate has a greater positive impact on the profitability of state-owned enterprises.Therefore,for state-owned enterprises,we should improve the risk management ability and reduce the non-performing loan rate.Finally,through the study and analysis of relevant research,we can find out the problems from the development status of my country’s auto finance industry and propose corresponding improvement strategies,hoping to promote the development and progress of auto finance.