On Business Efficiency Of Securities Companies Of China

The healthy development of Chinese securities companies is in relation to the Chinese securities market and national economy, and as the development of China's macroeconomic, The investors concerned about stock market, the continuous improvement of supervision provides a opportunity. However, With the gradual liberalization of the financial market, standardization and internationalization of securities market, The competitive environment in the securities industry has changed fundamentally, which makes Chinese securities are faced with more intense competition. The efficiency of securities companies which embodies the core competencies, it is the key factor to guard against financial risks that increasing the business efficiency of Chinese securities. At present, China's securities has realized to the importance of improving the efficiency of securities companies, How to improve the efficiency of the operation of securities companies is issues of the securities industry theory and practical that must be resolved.In this paper, focusing on China's securities companies operating efficiency, The full text includes eight chapters:Chapter one, introduction. This chapter includes the background and significance of topics; Research methods, research tools, the structure of full text; Literature Review; finally, this article summarizes the main contributions and shortage.Chapter two, the theoretical analysis of the business efficiency of enterprise. First of all, the writer provides an overview of the relevant theory about the business efficiency from an economic and management point of view. I believe that the low efficiency is the normal state of enterprise operations, the efficiency embodies the core competencies, the change of efficiency embodies the Dynamic capabilities. The secondly, I believe that the business efficiency system of enterprise is composed of the efficiency of using value, the efficiency of input value, the efficiency of output value, the efficiency of net value. Finally, the author analyzes economic implications and the measurement thought of the operational efficiency, cost efficiency, revenue efficiency and profit efficiency.Chapter three, Research on the relationship between market structure, efficiency and performance. In this chapter, I study the relationship between market structure of China's securities, efficiency and the performance,and found that China's securities companies supported "the efficiency of the structure of" hypothesis,that is, the key factor Deciding the performance of China securities companies is the efficiency rather than market forces. This conclusion provides empirical evidence for the need of carring out efficiency study about securities companies of China.Chapter four, Research on the operational efficiency of securities of China.This chapter has carried on an empirical analysis on operational efficiency, traditional total factor producity and the convergence of traditional total factor producity of 41 securities companies of China from year 2005 to 2007 using Data Envelopment Analysis(DEA). It finds that the productive efficiency, pure technical efficiency and scale efficiency of the securities companies were on the low level. It points out that the total factor productivity, which is represented by Malmquist productivity index, of the securities companies is increasing because the technical progress is increasing. However, the further increasing of the total factor productivity is affected by the decreasing of the operational efficiency from year 2005 to 2006. Operational efficiency and technical progress promoted the growth of the total factor productivity from year 2006 to 2007.Meanwhile, pure technical efficiency and scale efficiency of Securities companies of China had a significant absolute convergence. Finaly this chapter provides some suggestions for improving the productive efficiency in order to help the securities companies of China solve the existing and developing problems.Chapter five. Research on the cost efficiency of securities of China. Based on the data of 41 security companies from 2005 to 2007, this chapter has studied cost efficiency and cost Malmquist productivity index (CM) and the convergence of cost Malmquist productivity of security companies of China using DEA in order to analyze problems in terms of cost control, resource allocation.It finds that the reason that the average cost efficiency on 3 years of the security companies of China is low dues to that the average operational efficiency of the companies is low. Both productive efficiency change and allocative efficiency change brought effect on cost efficiency change, and played the block role between 2005 and 2006, but played the positive role between 2006 and 2007. To cost efficiency change and CM, operational efficiency change was larger than allocative efficiency change of the security companies, it was the main resource of the increasing of cost-technical change and CM, the progress of allocative technology change was smaller but was increasing. Absoluteβ-convergence in CM existed among the security companies.Chapter six. Research on the revenue efficiency and profit efficiency of securities of China. Based on the data of 41 security companies from 2005 to 2007, this chapter has studied revenue efficiency, profit efficiency and revenue Malmquist productivity index (RM), profit Malmquist productivity index (PM), and the convergence of revenue Malmquist productivity index (RM) and profit Malmquist productivity index (PM) of security companies of China using DEA in order to analyze problems in terms of Business income and Profitability. It finds that the average revenue efficiency and profit efficiency on 3 years of the security companies of China is very low, this shows that the income-generating capacity and profitability of the security companies of China is very low. It finds that both operational efficiency change and output oriented allocative efficiency change brought effect on revenue efficiency change,and the reason that the average revenue efficiency of 3 years of the security companies of China is low dues to that the average output oriented allocative efficiency of the companies is very low. By means of the analysis of revenue malmquist and the profit malmquist, it finds that although revenue efficiency and profit efficiency is very low, revenue malmquist and the profit malmquist is grow greatly. And the revenue efficiency, profit efficiency, output oriented allocative efficiency, revenue technology, profit technology and output oriented allocative technology of Securities companies of China had a significant absoluteβconvergence.Chapter seven. The structure of business efficiency and Choice of Management Strategy of Securities Companies of China. As a result of cost efficiency, revenue efficiency and profit efficiency, respectively, reflected the business efficiency of enterprise from different angles, I classified securities companies as A, B, C, D, E type, and I think that Different types of securities companies should take the appropriate management strategies according to their own structural characteristics of the operational efficiency. I studied the relationship between the several kinds of efficiency, and found that Cost efficiency, revenue efficiency have significant positive effect on the profit efficiency. China's securities companies need to expand the scale of operation, both to improve the cost efficiency and revenue efficiency. Finally, this chapter presented concrete recommendations on the management strategy for various types of securities companies.Chapter eight, the summary of article. This chapter focused on the summary of the the research findings from chapter two to the chapter six; This article summarizes the main contribution and the deficiencies in this article, and put forward the future research direction according to the above-mentioned shortcomings.In this paper, I try my best to make innovations in the following research:First of all, in this paper, build up revenue total factor productivity index model and profits total factor productivity index model, and we can analyse the dynamic change of revenue efficiency and profit efficiency. Concretely, the revenue total factor productivity index can be decomposed into revenue efficiency change index and revenue technical change index, meanwhile, the revenue efficiency change index can be decomposed into operational efficiency change index and output oriented allocative efficiency change index, the revenue technical change index can be decomposed into operational technical change index and output oriented allocative technical change index. Similarly, the profit total factor productivity index can be decomposed into profit efficiency change index and profit technical change index.The second, the author carried out the research on traditional total factor productivity, cost total factor productivity, revenue total factor productivity and profit total factor productivity. And test the convergence of the traditional total factor productivity, cost total factor productivity, revenue total factor productivity and profit total factor productivity further. It finds that there exists Advantage of Backwardness in China's Securities industry. Therefore, to the Securities Company with low efficiency, they can improve theirself by means of learning from the securities company with high efficiency in order to achieve sustainable development. To the Securities Company with high efficiency, they should cultivate Core competencies further, keep and strengthen their competitive advantage.The third, operational efficieney, cost efficieney, revenue efficieney and profit efficieney reflect the management level of enterprises from different angle. This paper research on the relationship between the cost efficieney, revenue efficieney and profit efficieney, it finds that he cost efficieney, revenue efficieney have sigficant positive effect on the profit efficieney, and Under the premise of improve the cost efficieney and revenue efficieney, Expansion can improve the profit efficiency level of the securities company, however, if ignoring the improvement of the cost efficieney and revenue efficieney , Expansion of operation scale has the negative effect on the profit efficiency level of the securities company.