Political Economic Analysis On The Competition Of Securities Firms

Securities market has been hailed as a "barometer" of national economy,China's security market after nearly 30 years revolution and development,has now issued by scale,since the Shanghai stock exchange and Shenzhen stock exchange has been established in1990 and 1991,as of November 13,2016,the total number of listed companies in SSE,which has been 2967,the total market value has been 56940.8 billion yuan,the current market value has been 39875.92 billion yuan.And the investment bank played an important role in the process of the company achieve docking with the capital market.In 2015,most of investment banking revenues less than 1 billion yuan,the range was 44.77 billion yuan,shows obvious gap in investment bank scale,large security company has obvious advantage in investment banking.In the top ten income of investment bank,there ware 90%of security company's first big shareholder was state-owned enterprise,the first shareholder has central companies' background accounted for 40%.So,this difference is due to the different security companies' management or due to the social resources which driven by political association,this is this article's main research direction.First of all,this article selects security companies' financial data between 2002 to 2015,which has the qualification of underwriting and sponsor,using fixed effect OLS model,the empirical results show that the security company which has central conpany background performance better,this due to the company business scale rather than the level of fees,and after considering the executive management ability,the result shows that although the senior executives' experience will significantly increase the scale of investment banking revenue,but the estimate coefficient of central background only slightly lower than before,this suggests that central background represents the background of social resources and social networks can improve investment bank revenue.This paper also uses listed companies' IPO and SEO data between 2002 to 2015,using fixed effect OLS model to carry on the empirical analysis,the results also show that higher performance due to its business scale,by constructing "whether same province security company" to measure the index of social resources,check out security company rely mainly on social resources to expand business,and proved that the investment banking market exists "central background effect" and "provincial effect".By using new three board data between 2014 to 2015,and with fixed effect of poisson regression model analysis the influence of the central background to the security companies' new three board business,the empirical results show that the central background security company didn't have a better performance than others,this proves from the other sede that t"central background effect" has an effect function is mainly due to the social resources.Compared with the previous literatures,this paper using all of the security companines' panel data betwwen 2002 to 2015,and verified "central background effect" and "provincial effect" by the listed company data.Using the new three board data to do plecebo test,makes the conclusion more persuasive.