Operational Efficiency Analysis Of Securities Companies In China Based On Modified Three-stage DEA Model

Since the establishment of the first securities company in 1987, China’s securities industry has gone through twenty-eight years of development, With the reform of non-tradable shares and the launch of the gem, margin trading and stock index future business, etc, China’s securities market has entered into a new stage of development through gradual development.However, although China’s securities industry ushered in the golden period of development, it also faces great challenge of industrial upgrading and transformation.Securities companies face common problems such as homogeneity competition and the unreasonable structure of income, and its future environment will be more complex and competitive by the impact of mixed financial industry and internationalization. Therefore,analyzing the insufficient operating efficiency of China’s securities companies, improving the operational efficiency of its business, enhancing its competitiveness is a problem of China’s securities industry to be solved urgently at present.This paper is based on three-stage DEA model put forward by Fried et al.(2002), use panel DEA method proposed by Ma Zhanxin(2013) to improve the three-stage DEA model and overcome the problem that the efficiency values can not be compared between the same decision-making unit in the cross-year comparative analysis. This paper is for2011-2013, China’s 53 securities companies’ operating efficiency empirical analysis. The study found that environmental factors has significant effects on the operating efficiency of securities company. Enlarging company scale and increasing the proportion of debt in capital structure and the proportion of traditional business in business structure will increase input redundancy, reduce operating efficiency. While high equity concentration, a long history and successful listing can reduce input redundancy, improve operational efficiency; Scale efficiency is the main reason for the operating invalid of the securities company under homogeneous conditions. For the operating inefficiency of securities company, this paper concludes the influence of management and technology is more apparent before eliminating environmental factors and random error. After eliminating environmental factors and random error, this paper finds that scale inefficiency is the cause of the low comprehensive efficiency, showing that each securities company has been lacking in the labor and capital investment scale, scale efficiency is the main factor affecting the overall efficiency; Capital liquidity helps to improve the operating efficiency of securities companies. Before and after eliminating environmental factors and randomerror, A securities company operating efficiency is better than that of class B, class B securities companies operating efficiency is better than that of C, indicating that the operating efficiency of securities companies and the level of the Commission to the net capital as the core of the risk supervision index system of the rating results are basically the same, the SFC regulatory classification rating standards are generally scientific, reasonable andfair, this shows that the securities companies with high liquidity of asset have good operating efficiency, and the securities companies with low liquidity of asset have low operating efficiency.According to the above empirical analysis, this paper proposes the following recommendations: First, improve the capital scale, take large-scale operating roads; Second,improve the business model and enhance business innovation ability; Finally, appropriate relax regulation, optimize the environment of the securities industry regulation.