Data Envelopment Analysis Of Production Efficiency Of China's Securities Industry

To study the efficiency of securities firms can help people to understand the utilization of resources in securities industry, which is a kind of reference to how to develop for it in the long run. Based on the consideration, we select the financial data of 80 securities companies in the interval of 2006 to 2009 and the operating efficiency, pure technical efficiency and scale efficiency of these companies are calculated, using data envelopment analysis method (DEA). After a horizontal comparison among these companies, we find that the share of security companies efficiently operated is low in our country. Accordingly, the number of those efficiently operated is rising after a longitudinal comparison. Then the Total Factor Productivity analysis gives us further understanding of the dynamic trend of securities firms' operating efficiency, from which, we know that the Total Factor Productivity Efficiency is on the down side. From much deeper study, we also find that the reason why that goes down is that the technical efficiency is decaying. In the following sections, the factors affecting the operating efficiency of securities firms is analyzed, using Tobit regression analysis, which shows that the most impressive factors are the degree of diversification, human capital investment and innovation of securities companies, and as to whether or not they have listed, scale of them are not significant. Finally, on the basis of those most significant factors, corresponding policy recommendations are proposed.