Empirical Study On The Operating Efficiency Of Security Companies In China

Security Companies are the most important financial intermediaries. Well-regulated and high-efficiency security companies are the basic conditions for the establishment of healthy capital market. With the development of capital market in China, the operating problems of security companies have been emerging. The study on the operating efficiency of the security companies in China is becoming more and more significant. This paper adopts the DEA methods, including CCR model and BCC model, to calculate the operating efficiency of China’s security companies with their financial data. Based on the calculation results, the paper selects Tobit model to study the influential factors of the operating efficiency of the security companies in China.The calculation results reveal several points:(1) The operating efficiency of security companies in China is rather low in the whole, and differences are obvious among security companies. The main reason for this is the low pure technical efficiency.(2)Most of security companies in China are in the stage of increasing returns to scale, which manifests that the scales of the security companies in China are to be improved.(3)Innovative security companies have higher operating efficiency than other companies. Regulatory security companies have high scale efficiency, but the pure technical efficiency is relatively low.(4)Listed companies obviously have higher operating than other companies.(5) The introduction of foreign capital in security industry has little effect on the operating efficiency of security companies.The regression result of Tobit model illustrates that:(1) The increase of capital scale of security companies can enlarge the management difficulties, but improve the operating efficiency through the scale efficiency;(2) Capital structure can produce the effect in two aspects. on the one hand, the increase of leverage ratio can expand the scale of security company, hence improve its efficiency; while it can increase the operation risk on the other hand;(3) Business structure have negative effect on comprehensive efficiency, pure technical efficiency and scale efficiency;(4) The operation length have no dramatic effect on the operating efficiency, but the number of business divisions have dramatic positive effect.Based on the research results, the paper put forward several suggestions on the improvement of the operating efficiency of security companies in China.