Empirical Analysis on the Performance of Rural Credit Cooperative’s Shareholding Reform Based on the Rationale of Isomorphic Incentive Compatibility

Abstract

Rural economic development helps reduce the income inequality in China. Existing studies show the positive effects of rural reforms, however, whether the rural credit cooperative’s shareholding reform promotes rural economic development and whether effects are exerted through the synergism between agricultural producers and rural financial institutions remain unclear yet. Employing the rationale of isomorphic incentive compatibility from system science, we analyze the necessity and influencing conduit of rural credit cooperative’s shareholding reform theoretically. Analysis shows that only the financial services from rural commercial banks can promote the modernized production, and thus the synergism between them drives rural economic development. Then we make empirical analysis on the effect with a Chinese provincial sample. Comparing to provinces with lower reform progress, the provinces with greater reform progress are influenced more prominently by this reform. Applying coupling coordination degree model, the coordination between agricultural production and rural banking development shows obvious increase, especially after the formal implementation of shareholding reform on rural credit cooperative. Empirical results indicate that this synergism plays positive roles in promoting agricultural growth and reducing the urban–rural income gap. In addition, these effects are more pronounced after the formal implementation of shareholding reform.

An ExpTODIM-EDAS-Based Multiple Attribute Group Decision-Making Framework for Supervision Effectiveness Evaluation of Small and Medium Sized Financial Institutions in Rural Areas Under Intuitionistic Fuzzy Circumstances

“…Although the stock cooperative system has made progress and improvements compared to the cooperative system, this property rights model is still not conducive to establishing a corporate governance structure that conforms to the modern financial enterprise system [32][33][34]. The transformation of shareholding system is the core of improving the corporate governance structure of rural small and medium-sized financial institutions.…”

Spatial-Temporal Evolution and Influencing Factors of Rural Financial Resource Allocation Efficiency in China

“…Giving full play to the leading role of financial resources in improving the efficiency of rural production is conducive to promoting the development of the rural economy in the western region (Hu et al, 2021).…”

“…The financial market allocates capital to the most effective departments to promote economic development (Bodie & Merton, 1995). The allocation of capital resources includes credit resources (Hu et al, 2021) and fiscal resources (Long et al, 2016). In terms of financial institution resources, prior studies have used Data Envelopment Analysis (DEA) to calculate the efficiency of rural financial institutions (Fletschner et al, 2010;Duguma & Han, 2021) Existing studies show that DEA is broadly used to evaluate the financial efficiency of rural banks (Xiang et al, 2018), agricultural cooperatives (Gutierrez-Nieto et al, 2009), and microfinance institutions (Xiang et al, 2018;Zalewski et al, 2022).…”