An Analysis Of Efficiency Of China 's Securities Companies Based On Super Efficiency DEA

China’s securities markets and securities firms have developed more than20years since the late1980s. At present, securitization has been greatly improved. As the most active intermediary agencies, the securities companies are critical to the development of the whole market. Internal and external management system of China’s securities firms have improved a lot, but the firms still face many problems such as the business is not diversified enough. How to improve the efficiency of securities firms is crucial not only to the securities companies themselves but also to the whole securities market.The empirical analysis is divided into two parts. First, this paper calculated technical efficiency, pure technical efficiency and scale efficiency of71securities firms based on the classical DEA model and super-efficiency DEA model. Then this paper examined the effect of four internal factors (asset size, capital structure, business structure, listed or not)and one external factor (the price change of the stock market) on the efficiency values through the multiple regression analysis of the2007-2011panel data of47securities firms.The empirical results show that overall efficiency value of China’s securities firms is not high. Only two securities firms achieve are technical efficient and scale efficient. Only11securities firms have achieved pure technical efficiency. Most firms’ technical inefficiency is caused by the pure technical inefficiency. About half of securities firms are in the stage of increasing returns to scale while the others are not. Most of large securities firms are in the stage of decreasing returns to scale, while many small securities firms are in the stage of increasing returns to scale.By the regression analysis, it can be found that asset size has a negative impact on technical efficiency and pure technical efficiency at0.1%significant level; asset-liability ratio does not have significant influence on any one kind of efficiency values; brokerage ratio have significant negative impact on all the three efficiency values; being listed has a negative impact on technical efficiency and pure technical efficiency; the price change of Shanghai Composite Index has positive impact on the technical efficiency and pure technical efficiency at0.1%significant level.Finally, based on the research above, the paper suggested that China’s securities firms should pay attention to controlling the scale, improve business diversification to promote efficiency, remain conscious of going listed and the increase of leverage, and reduce the impact of market volatility on the firms though the development of less cyclical businesses. The paper also suggested that the regulatory agencies should reduce administrative examination and approval of new businesses and products.