Research On The Efficiency And Developmental Strategy Of Chinese Investment Banks

Investment bank is the core of the capital market in the developed market economic country. Investment bank is considered as the intermediary for the capital market and the hub of the medium-and-long-term working capital. The development of the investment bank effectively promotes the innovation of the financial instruments. With the completing of the reform of non-tradable shares, china capital market gradually gives full scope to the whole financial economics system. Meanwhile, the operational efficiency of the investment bank will direct influence the function of capital market, which will affect the stability and development of the whole financial system and the development speed and quality of the entire economy of the whole country. Therefore, it becomes the universal concern that how to improve the competitiveness of the investment bank to face a fierce challenge of the international market.Presently, most of the domestic document studies prefer to rank the investment bank by single factor, which can not totally reflect the panorama of the efficiency of the investment bank. This essay strives for exploring the efficiency of China investment bank against the background of globalization and financial crisis by the means of science, reasonable and system, and profoundly analyses the formative factors of the problem and the impact factors of efficiency. Finally, this essay brings forward the sustainable development in order to improve the competitiveness of China investment bank, and promote investment bank farsighted development.On the basis of taking example by research results of scholars home and abroad about related financial institution efficiency, this article uses DEA and malmquist index to measure static and dynamic efficiency of 34 investment banks during the years from 2005 to 2009.And then, it uses the banks'panel data to empivicallyanalyse the influencing factors of its efficiency by means of Tobit Regression Model.Main conclusions of empirical analysis:①Although there has been a soaring tendency of 34 investment banks'overall efficiency from the year 2005 to 2009, efficiency value is still not high, which was mainly caused by the pure technical inefficiency;②Investment banks'overall efficiency slightly increased from the year 2005 to 2009 in our country, it mainly benefited from the increase of pure technical efficiency, while it is the technical progress of investment banks that makes TFP increase.③Factors like scale, profitability, risk management, capital structure, business structure and staff quality have positive relation with its pure technical efficiency, while the product assortment has nothing obvious to do with pure technical efficiency.Finally, on that basis, this article puts forward suggestions for the increase of investment banks'efficiency and sustainable development in the following two aspects: investment banks'development countermeasures and patterns.