A Study On The Efficiency Of Chinese Standardized Securities Companies

Along with economic globalization,securities companies are facing more and more complicated competition environment and uncertainties.Especially with the outbreaking of US sub-prime loan crisis in 2008,the falling down of three major investment banks in the US gives the domestic securities a warning how to evade risks while improving operational efficiency.The standardized securities companies in our country are small scale in capital strength and weak in the ability fighting against risks.It is a problem which needs to be solved urgently for these companies how to improve their operational efficiency and gain a firm foothold in competition.Under this background,the paper measures the efficiency of Chinese standardized securities companies with Data Envelopment Analysis,and makes an effort to improve the operational efficiencies.The paper reviews the related theories and models home and aboard about Efficiency and Data Envelopment Analysis.Then the paper summarizes the concepts of Securities Companies and Efficiency and makes an empirical analysis of Chinese securities companies.The paper firstly analyzes the efficiency changes of Chinese securities companies between 2005 and 2007 with the Malmqulst index and then makes a vertical analysis upon the efficiency of standardized securities companies in 2007.Based upon the results,the paper analyzes the relations between efficiency of Chinese securities companies and business component,organization scale,talent management, corporate governance,risk controls,and then makes recommendations on improving the efficiency of standardized securities companies from the five aspects.The conclusion of the paper includes:(1) there are no evident scale economy in Chinese securities companies;(2) the efficiency decreased slightly from 2005 to 2006,while increased slightly from 2006 to 2007;(3)the results show that the efficiency of standardized securities companies is closely related to business component,organization scale,talent management, corporate governance and risk controls.Finally,the paper gives some proposals for the improvement and enhancement of efficiency from the above- mentioned five aspects.