Research On The Efficiency Of Chinese Securities Companies And Its Determinants

With the rapid development of China’s economy becomes into the current stable development, economic structure is adjusting and industry is upgrading. The financial industry as tertiary industry will be the direction of the development for a long period of time. Therefore, it has put forward higher requirements to regulate the development of China’s capital market. The security companies as the capital market intermediaries, whose operational efficiency are not only the concentration embodiment of its core competitiveness, but will affect the entire capital market efficiency and order. Therefore, selecting to research the efficiency of securities companies, as one of financial institutions, is extremely meaningful.This paper selected 95 securities companies from 2005 to 2013 data and used the stochastic frontier model based on the output distance function and inefficiency equation, then measured pure technical efficiency of 95 securities companies and analyzed determinants of pure technical efficiency; Finally on the basis of beyond the logarithmic output-oriented distance function, the paper measured scale efficiency of securities companies, and thus measured the technical efficiency of securities companies. The results show:the technical efficiency and pure technical efficiency of Chinese securities companies are low and the polarization of the securities companies’ efficiency is serious. However, the scale efficiency isn’t low. Total assets, other operating income share of total revenue and weighted average return on net assets influence technical efficiency remarkably, and it is positive. However, the influence of these factors, including whether listed stake, the history of these securities firms, the top five shareholders stake and the ratio of the proportion of the second and fifth largest shareholders and the largest shareholder on technological efficiency, is not significant.Ultimately, According to the results, the paper puts forward proposals to improve the efficiency of securities companies:First, expand the scale of assets to enhance the overall strength; Second, diversify business structure and increase the profitability channels; Third, Reduce Costs and Improve Profitability.