The Analysis Of The Operating Efficiency Of Securities Companies In China

With the completion of reform of non-tradable shares in China, China's capital market has really begun to play their real role in the entire financial and economic system. As the most important intermediary in our country's capital market, securities companies' operational efficiency will directly affect the level of the operational efficiency of capital markets, and in turn it will affect the operational efficiency of the entire financial system and the whole country's development. Therefore, it is urgent to research the efficiency of securities companies.First, this paper selected 102 samples and used data envelopment analysis (DEA) to conduct a study of operating efficiency of securities companies in China in 2008. This study concluded that the overall efficiency of China's securities industry was not high, and polarization was severe; the capacity of internal resource allocation of China's securities companies was low and most companies failed to meet the optimal scale of operation; the efficiency of innovation firms was significantly higher than standard classes and other securities firms, and the efficiency of standard classes firms was lower than other securities firms; the efficiency of large securities firms was significantly higher than the small securities firms; listing firms' efficiency was higher than that of non-listed ones; the efficiency of firms with foreign equity participation was lower than other local ones. Second, this paper used Tobit regression model to study the factors which affected the securities company's operating efficiency. It concluded that the capital structure which was measured by asset-liability ratio and the asset structure which was measured by current ratio had a significant positive impact on the firms' operating efficiency, and the proportion of business formation which was measured by net fee and commission income ratio and the ownership structure which was measured by the concentration of equity ownership structure had a negative impact on the firms' operating efficiency. Finally, on the basis of the whole study, this paper put forward some suggestions to improve the efficiency of China's securities companies.