Influence Factors Of Securities Companies’ Competitiveness Based On Structural Equation Model

In2007, the American financial crisis attacked the stability of world financial systemseriously.The response of Chinese securities companies to the crisis was relatively weak dueto the early stage of development, however they appeared stronger competitiveness in ashort period after the crisis. Then, in2011-2012, Chinese securities companies was into thedevelopment dilemma showing that entire securities industry generally declined and morethan60%securities companies presented regressive trend in terms of growth capacity.In this article, the first starting point is to find the turnaround strategy of securitiescompanies. In the first chapter, we analyze the background, significance, methods and theresearch framework.. In the second chapter, we mainly have a review, deduction and summaryfor the past research literature to find its value and deficiency. The literature research mainlystarts from the enterprise competitiveness which is the theoretical foundation of the securitiescompetitiveness，the securities association of China, the securities affiliated institutions,academic papers and works. In the third chapter, the index has been selected,and thecompetitive index system which includes5potential internal variables and19observedinternal variables has been built, which based on the combination of elements used in the pastand a series of principles of comprehensive, targeted, science and operability. To bettershow the securities company’s operating performance in recent years, especially in2012, wehave a systematic description from four aspects involving finance, brokerage, underwritingand sponsorship activities and set of financial products in the fourth chapter. In the fifthchapter, we use the Structural Equation Modeling to analysis China securities companiescompetitive factors. The empirical result shows that the securities companies’operatingcapability, innovation, profitability is the most central factors which affect thecompetitiveness of securities companies. For all of the observed internal variables, all indexesunder the operating capacity, the number of business innovation and securities regulatoryrating have a greater impact. In addition, some factors are relatively easy to overlook,especially the average turnover of all branches and the count of non-brokerage businessincome. The sixth Chapter, using the empirical results in the previous chapter, analyzed howto raise the level of competitiveness for Chinese securities in a short time which mainly related to improve the viability, profitability, quality of service, high-grade securitiesregulatory rating, as well as decline the proportion of brokerage business.This paper selected114securities companies of the securities industry in2012as studysample, involving nearly ten thousand data,and used the Structural Equation Modeling todescribe the factors of affecting the competitiveness for securities companies which not onlyprovide ideas for securities companies to improve competitiveness in a short time, but alsoprovide a measurement method for the future competitiveness study of securities companies.