Study On The Efficiency Of Securities Companies Based On Dea Theory

Efficiency is one of the priorities of economic research, it’s also a goal for asecurities company. The efficiency of securities companies is reflected not only thecompetitiveness of securities companies, but also the management performance. The levelof efficiency value can reflect the securities industry’s overall operating results andresource utilization. Chinese scholars prefer to use the conventional element indexsecurities company efficiency.On base of the operating efficiency of China’s securitiescompanies as the research object.This paper selects the securities company representativedata as sample, uses the DEA C2R model and BC2model to analysis and calculation oftheir technical efficiency, pure technical efficiency and scale efficiency, then ranksanalysis to explain the current situation of China’s securities industry, and gives opinionsand suggestions by the efficiency of different securities companies.First, This paper inspects the efficiency of research at home and abroad;At the sametime, it introduces the traditional efficiency evaluation method frequently used in thecompany’s efficiency study,and their shortcomings and deficiencies in the efficiency ofresearch; then, selects the most cutting-edge efficiency study method of data envelopmentanalysis as a research tool as the theoretical basis for the following analysis.Secondly, the article reviews the history of the development of China’s securitiescompanies, on base of the development history and present characteristics of China’ssecurities market,it summarizes the course of development of China’s securities companiesand present characteristics; Then analysises the factors affecting the efficiency ofsecurities companies from the macro and micro。Again,this part uses data envelopment analysis measures the scale efficiency,technical efficiency and pure technical efficiency of18securities companies in China2010, and in decreasing the level of efficiency of these companies to make the ranking,revealing the operating status of securities companies through the analysis of theefficiency scores.According to the results of DEA model data analysis, technical efficiency, pure technical efficiency, scale efficiency as the dependent variable,this partmakes a multiple regression analysis of the microscopic characteristics that affect theefficiency of securities companies,thereby identifying factors have a significant effect onthe efficiency.Finally, proposeing suggestions and comments to improve the efficiency of China’ssecurities companies.Securities companies should reduce the proportion of nonperformingassets in the total assets to improve asset quality;change the the status of over-reliance onthe traditional businesses, establish a sound customer service system, to open up space forinvestment banking and the development of mergers and acquisitions advisory services;the same time, the government should establish sound regulatory system, and enhance thecompliance of securities companies.