Research On The Efficiency Of Chinese Investment Banks

The efficiency greatly reflects the investment banks competitiveness and sustainable development ability. Having high efficiency means that investment banks can make good use of their resources. That is the important standard of operating performance and itself also became an effective method about the performance evaluation of the investment bank.At present, the majority of Chinese researchers study the efficiency of investment banks with traditional financial index. However, the financial index is too simple and it can't reflect the efficiency completely. Based on our investment banks vigorous developing, this paper used the data envelopment analysis technology to measure and analyzes the efficiency of investment Banks, in order to study and analyze the impact of investment banks operating efficiency factors. Further, provided a clear direction for improving the efficiency of investment banks.The innovation of this paper include: on the basis of research results at home and abroad, the input-output has a new definition; use DEA method studying systematically China's 26 securities companies in 2007, researching the various investment banks in the technical efficiency, pure technical efficiency, scale efficiency, super-efficiency and NIRS efficiency; use Malmquist index measuring the investment banks dynamic efficiency period 2005-2007; Finally, not only in theory, discusses the impact of investment banking efficiency factors, but also the use of two-step method using a linear regression in the empirical analysis of factors affecting the efficiency.The main conclusions of this paper: In 2007, 26 investment banks in the overall level of efficiency is relatively high, there is no obvious scale economies, including the First Capital etc. 14 securities companies, technical efficiency, pure technical efficiency, scale efficiency are one, more than a half of the total number of samples shows that in 2007 investment bank better use of resources. 2005-2006 year, 25 securities companies slightly increased the level of overall efficiency, in 2006 to the 2007 level of overall efficiency slightly decreased. It also reflects the 2006-2007, as the market improved, the investment bank earned a lot of profit, but the scale of the expansion has not brought about efficiency. Finally, made the factors affecting the efficiency of multiple linear regression analysis at 26 samples of securities companies in 2007, the results did not pass the test, and most of the variable value of the efficiency is very low explanatory power.On this basis, this article from the institutional innovation, investor protection, promote concentration, diversification, development of e-commerce, and improve some aspects such as employment mechanism gives some proposals for the improvement and enhancement of efficiency in Chinese investment banks.