Efficiency Evaluation of Chinese Trust Industry Based on SFA

摘要

With the announce of new rules in Chinese trust company, the competitions among different trust companies are more fierce, and the efficiency of trust company is the epitome of competitive power; accordingly promoting the efficiency of trust company is key to guard against financial risks and open up externally. This paper firstly studies the profit efficiency of China 44 trust companies by using stochastic frontier analysis (SFA) method; first, adopt the model of trans-log function and structuring profit function, and the result indicates that profit efficiency of Chinese trust company shows a decrease tendency in general. It relates to the excessively pursuit of expanding the scale of trust and decreasing the rate of pay of trust in recently years. Besides, classify the trust company according to the background of stockholder, and analyze the intrinsic reasons of actuality, trend, and change of profit efficiency in trust company with different stockholder background.