The Efficiency Evaluation And Influence Factors Analysis Of Security Company’s Main Business In China

In the past ten years the massive restructuring and market recovery, the chinasecurities industry data have been improved. Despite the market is appeared for threeconsecutive years stagnant from2009to2011, the china securities industry revenues arestill in2005from13billion yuan rose to163billion yuan in2011; since six years ago thetrade had been a loss of6billion, that has accomplished46billion yuan profit. However,these numbers also easy to mistake a point of view that retail dominant, attention spotmarket, homogeneity and low technical content also make the china securities industrysuccess. However, the reality is that these are not sustainable business model. Most ofchina’s securities companies provide no difference in the services, at least on the face itare very similar. For example, when the companies charge trading commissions on stock,fees are almost the same level. Moreover, their fate is decided by the uncertain factors ofthe market fluctuation and china’s economic growth in future. Therefore, with the rapiddevelopment of china’s securities industry and securities industry competition intensifies,the securities company efficiency problem becomes more important.This article selects the109securities companies for the total sample, we usestochastic frontier analysis method (SFA) to analyze these sample firm’s brokerage,investment banking, asset management business and the self-employed business basedrelevant data in2009-2011, and analysis China’s securities companies from two aspects:the four securities companies business’s technical efficiency aspect and factors thatinfluence of the technical efficiency. The empirical results show that: in the technicalefficiency, China’s securities company’s four business efficiency is very low, especiallythe self-employed business is extremely low, serious polarization. In the trends ofefficiency, except for the brokerage business and asset management business efficiencyshowed a trend of decline, the other major business efficiency is showing a rising trend.In the factors of influence efficiency, the ratio of shares concentration on brokerage andinvestment banking business’s technical efficiency showed significant negative effects,the education level of staff and internal incentive mechanism on four securitiescompanies business’s technical efficiency have positive influence, investment advisorycapacity has positive influence on brokerage business’s technical efficiency,recommendation ability has positive influence on investment banking business’stechnical efficiency, research ability has positive influence on management business andthe self-employed business’s technical efficiency, the ratio of liabilities to assets of theself-employed business’s technical has negative effect.Finally, in the empirical analysis based on the paper, the conclusion and putsforward several points about improving our country securities company’s four business efficiency.