A Study On The Influence Of Stock Market Fluctuation On The Operating Performance Of Chinese Listed Securities Companies

As important intermediaries in capital markets,securities firms has the pivotal function to its healthy development. After ten years of development and comprehensive management in recent years, Chinese securities companies entered a rapid development period,Meanwhile,factors affecting the operating performance of securities companies are more and more. The stock market is the core of China’s financial market,with the completion of split share structure reform, the stock market is becoming more complete.As the two important part of the capital market,the correlation between securities companies and the stock market became closer. Studying on their relationship is necessary.Previous literature mainly studies the performance of securities companies,business structure and risk management,sometimes involving explore how stock market performance effects certain aspects of securities companies, but lack of the research about how the stock market volatility has a multi-faceted on securities company’s operating performance. Therefore,this paper attempts to make a breakthrough in this regard,and tries to study the conduction ways of stock market fluctuation to the securities companies,and the degree of the impaction between them.Firstly,this paper made a review on the academic circles at home and abroad on business risks of securities companies,stock brokerage business impact of certain aspects of the business and the performance of the relevant research literature; Secondly,this paper describes the theoretical basis of stock market volatility related to operating results on the company’s securities;Thirdly,it elaborates overall characteristics of China’s securities market. Then,on this basis,make detailed analysis on impact mechanism of how the stock market volatility effects the securities company’s operating performance. Analysis mainly from pathways of stock market volatility impact existing major business of securities companies and this article also made a brief description on other factors( including macroeconomic factors, industry factors,micro factors)that can affect securities companies.In the empirical part of this paper. Firstly, according to a simple statistical analysis,this paper made a comparison charts between stock market volatility and 12 listed securities company’s revenue trend,then,made a preliminary forecast on pathways of stock market volatility impacting business of securities companies. The next,this paper uses the panel model to test empirically the quarterly date of 7 commercial securities companies in 2008-2015 after the variables all have been HP filtered and unit root tested. Based on the company’s own securities business,this paper chose to operating revenue as the main indicators of company performance,in addition,under the overall “operating revenue” metrics,this paper respectively select five indicators to reflect the level of performance of each business direction of the company’s securities. Including “fees and commission income”, “net income from agency trading securities”,“ net income from securities trading agency”,“ net income from entrusted client asset management business ”,“net interest income ”, “ Investment income ”.This paper selects some impact variables based on the features of the securities companies and stock market, and divides the variables into commercial securities companies’ operating performance variable( dependent variable), the stock market fluctuation variable(independent variable) and control variable. This paper selected the volatility calculated on the basis of the index CSI 300 index as measure of stock market volatility variable. This article illustrates the factors of the operating performance of the securities companies Firstly, they are divided into three kinds according to their characteristics on the basis of the domestic and foreign scholars’ studies about the influencing factors of the securities companies performance-- macroeconomic factors, industry factors and microeconomic factors.The main conclusions of this paper are:the stock market fluctuation has a negative correlation with Investment income, and has positive correlation with The securities company’s Total operating income,fees and commission income,interest income and net income from securities trading agency. In the control variable terms,GDP growth and total assets of securities companies respectively has a significant positive correlation with operating revenue,has a significant positive correlation with operating revenue. The size of securities industry and the securities company’s asset-liability ratio has a negative correlation with operating revenue. Broad money supply(M2) and the Securities Investor Confidence Index had no significant impact on operating revenue, which both have little impact on operating revenue.Finally,based on the empirical results,and in order to avoid changes in the market environment to bring too much impact the company’s securities and to improve the operating performance of securities companies,this paper made business strategy recommends for securities company according to internal aspects and external environment,look forward to establishing a good foundation for the securities company’s sustained,healthy and stable development.