An Empirical Study Of Securities Business Concentration And Performance In The Background Of Innovative Business

Securities industry as an industry in our country has developed rapidly over the past 20 years, especially in the last 10 years, total assets of securities industry 579.8 billion yuan from the end of 2006 rose to 4.7015 trillion yuan by the end of 2014, an increase of up to 8 times. As an important part of finance, Securities plays an important role in the capital markets. In the past 10 years, the securities business is also expanding; the existing or new business of securities investment consulting, asset management, the new board, stock index futures, margin trading, have become an important part of the securities companies’ revenue, Securities companies’ revenue structure is also undergoing constant change. Building in the capital market, China’s stock market has begun to take shape, the GEM was established in 2009, in recent years, provinces have set up regional equity markets, multi-level capital market framework has been formed. Whether capital markets or securities industry has taken great place during the past10 years,the previous degree thesis focused more discussion is the relationship between brokerage, underwriting and other traditional business-oriented degree of concentration and performance, which is little significance for current situation, At this time again to re-examine the relationship between concentration and performance securities business under the new situation has practical significance.In this paper, from the perspective of industrial organization theory, empirical research on the relationship between China’s securities business concentration and performance; before the empirical analysis, the paper elaborate the theory of industrial concentration and abroad on industry concentration and Performance. First a brief description of the securities industry developments and analyze the degree of concentration and market size from two angles, calculate the size of the securities industry, the primary market, these condary market of CR1, CR5, CR10 of specific values. In this paper, the data mainly from the flush software,there are some data from the Securities Association of China, and Shanghai each listing broker annual reports, the Shenzhen Stock Exchange. Taking in to correlation between the concentration index herein, a method first used factor analysis to extract several main ingredient in brokerage, underwriting business, net assets, margin trading, asset management to replace the relevant focus metric indicators. Then multiple linear regression analysis.China’s securities business through concentration and performance analysis, the following conclusions:(1) The securities industry over all concentration level(F1) and ROE was positively correlated, but the correlation is not.(2)Carrying out innovative business help to improve the traditional concentration(F1) coefficients, because carrying out innovative services promote the role of traditional business;(3) Margin as a representative of an innovative business help to improve the performance of the broker, should vigorously develop new business, increased brokerage revenue.(4) the Shanghai Composite Index and the securities industry growth ROE was positively correlated, but the correlation is not.(5)The impact on the performance of the Shanghai Composite Index on the wane, and may be affected by a number of missing elements, the writing process can not take into account all the factors affecting performance, can only seize the key factors;(6) The concentration of the brokerage’s total assets and net assets yield correlation is not significant, which indicate the performance of our securities will not expand and improve because of the stock of assets.Proposal to increase the degree of concentration of the securities industry:(1) Optimize the allocation of resources to promote the securities industry focus, securities corporate restructuring imperative;(2) Conduct business restructuring and innovation, create new profit model, innovation is increasing core competitive ness brokerage fundamental way;(3) Capital market by improving the corporate governance structure of securities;(4) Government regulation reform and innovation, securities companies in order to respond to market changes and be innovative, business model innovation and product innovation, Government should not exert too many restrictions.