Research On The Efficiency Of Securities Company In China: The Data Envelopment Analysis (DEA)

Chinese securities industry started late, and the securities companies only has a history of about twenty years. After all these years, Chinese Securities Companies, grow from scratch, from less to more, form small to large, are beginning to take shape. But there also exist plenty of problems, such as:the weak-based, the small scale, the high homogeneity business, the fierce competition, the weak risk acceptance, and the business activities highly correlated with the stock market, and so on.Efficiency is an important indicator of the securities companies. As a non-parameter method, the DEA is widely used to analyze the efficiency of productive department. This method can not only measure the efficiency of the departments, but also can provide a direction to improve the efficiency of the invalid department.Used the method of DEA, make an empirical analysis on the efficiency of the 95 securities companies in China, and find that (1) there does not existing obvious scale economy to the securities companies in China. Compared to the world-renowned securities company, the securities company in China is small-scale. But their scale is match to their own management level, technical level and the overall environment. So the sale of the securities company in China is suitable. (2) The efficiency of the securities company in China has a high correlation with the stock market and the economics. In 2006-2007, the efficiency of the securities company sensible increased. In 2007-2008, the efficiency obvious decreased. In 2008-2009, it increased slightly.Through the further correlative analysis between the factors which affect the efficiency of the securities company in China and the efficiency value, find (1) the technical efficiency and the pure technical efficiency have a positive correlation with total assets, net capital, assets quality, ownership concentration and business department quantity, have a negative correlation with the business structure. (2) There is a negative correlation between the scale efficiency and total assets, net capital, business department quantity, and a positive correlation with the assets quality, business structure. (3) Zhongxin and BeiJing Gaohua have been in the production frontier surface.The main innovation is divided the 95 securities companies to A, B, C according to the classification of China Securities Regulatory Commission, and then compares the efficiency of the three classes for the first time.