Study On Operating Efficiency Of Chinese Securities Firms

Since the establishment of the first professional securities company in 1987, Chinese securities industry has gone through 22 years of development. During the 22 years, the securities industry has continuously grown and become an important part of the financial system and made important contributions to the national economic development.Looking back on the 20 years, the development history of Chinese securities companies can be divided into the following stages:First, the start:since 1987—1989.In this stage, China established the first securities firm. The development stage:1990—1998. In this stage, the number of securities companies increased fast. The golden stage:1999—2001.In this stage:The Chinese government introduced a number of new policies to improve the development of the securities companies and made a great success. Drop stage:2001—2005. This stage, China's stock market plummeted. During this period, Chinese securities started to up and downs.Since 2004, the comprehensive reform of securities companies began. After five years, the efficiency of Chinese securities firms improved greatly. Even during the Financial Crisis, Chinese securities firms received less impact, though the U.S. investment bank fell. But the Financial Crisis still gave us a lot of warnings.In this context, we find that the study of the efficiency of Chinese securities companies has academic value, but there are few literatures about the efficiency of Chinese securities companies, especially the DEA model on it. Most of literatures were studied from the point of the securities company's size, profitability, structure, business systems and innovation.As a rigorous scientific evaluation and optimization theory, DEA has been successfully applied after 20 years of development in many fields. But in the field of application of financial securities, it is lagging. So far, DEA had only been wildly used in banking. In fact, DEA can deal with a variety of different input and output variables and measure out the technical efficiency, pure technical efficiency, scale efficiency. Therefore, the study about the Chinese securities companies operating efficiency with theory of DEA has theoretical and practical significance.This paper selected 39 securities companies as a sample, analyzed their technical efficiency, pure technical efficiency, scale efficiency, with the DEA model. Also we analyzed the factors which affected the efficiency and give some suggestions to improve the efficiency of the securities company.