Research On Efficiency Analysis Method Of Business Department Of Securities Company Based On DEA

Although the nature of China’s securities industry is subject to government regulation on license monopoly, however, China’s rapid economic development bring a bursting type of development to the securities business.securities companies and their stock exchanges throughout the country become more and more. At the same time, with the increase in the number of competitors, the securities industry will inevitably experience the change from a few brokerage oligopolies to a growing number of competitors. In this case, each of the securities company’s operating efficiency in the competition is particularly important; management is an important factor restricting benefits and decisions. As a platform connecting the securities company and customers, the efficiency of the stock exchange plays a decisive role in the entire company’s efficiency.On the problem of how to judge whether a stock exchange is in good running condition, after querying to the current literature, the theoretical research is still relatively small. However, the securities companies need it to judge the efficiency of the stock exchange. According to the interviews with several representative securities companies, we found that most managers identify strengths and weaknesses of the stock exchange by subjective judgment, which means solely based on the total turnover of the business unit. Therefore, on the basis of literature research and field visits, the paper is intended to use an objective point of view, the choice of DEA method, to build stock exchange operational evaluation system to evaluate the efficiency of the integrated stock exchange.This article first establishes a DEA model, selects the input and output indicators by literature researching and expert interviewing. Select the most suitable indicators for domestic stock exchange. Principal component analysis and factor analysis methods were adopted in the process of selecting the input and output. Finally use DEA projection principle to give suggestion to non-effective DMU. Then an AA-rated securities company is selected(across all regions of its 30 furniture typical of the stock exchange) as the example. From the stock exchange’s point of view, selecting a total of 18 input indicators and output indicators. However, there may be some linear relationship between these indicators. To guarantee the accuracy of the final result, principal component analysis and factor analysis methods are used, but in the premise of not losing a representative of the indicators. Finally, select the six input indicators and three output indicators. Then the evaluation results are obtained by DEAP software, and then the results are classified and analyzed. Finally, the corresponding improved projection is given.The corresponding recommendations and evaluation criterion(to judge the stock exchange) are given to the securities company.