Research On The Impact Of Diversification Of China Securities Companies On Business Performance And Risk

As a financial intermediary,securities companies play an important role in the development of China's financial industry.With the speeding up of the capital market in our country,the floating commission system and the impact of the Internet finance make brokerage business profit space more narrow.With the gradual relaxation of mixed operation,the financial institutions such as banks and insurance companies also gradually penetrated into the securities industry.Foreign powerful investment banks began to enter the domestic market,and our securities companies faced internal and external problems.Irrational business structure,fierce competition in the external environment forcing our securities companies to find new breakthroughs,diversification of business innovation is imperative.In 2012,the innovation conference of securities firms was held,and the innovation and development of China's securities companies entered an accelerated track,which ushered in a new situation with both opportunities and challenges.Under the background of financial innovation,innovative business such as asset management,margin financing and securities lending business,stock pledge repurchase business,futures brokerage business and new three board business are developing in a great way.The business structure of securities companies in China is moving towards the direction of balanced and diversified development.Based on the background of the financial innovation in recent years,this paper takes the listed securities companies in our country as the research object and the business structure as the starting point.Through in-depth research and theoretical analysis on the diversified development of the securities companies in our country in recent years,this paper puts forward the nonlinear between business diversification and business performance and risk Conjecture about the relationship,and empirical verification.It is hoped to summarize the effect of the diversification of innovation and diversification in China's securities companies in recent years and put forward reasonable suggestions from the perspectives of supervision,industry and securities companies of our own in light of the unique economic environment of our country so as to promote the sustainable and healthy development of securities companies in our country.This article first combs the relevant literature from two aspects:business diversification and business performance,business diversification and risk.The second chapter introduces the theoretical foundation and mechanism of business diversification's impact on business performance and risk.The third chapter introduces the development course of diversified business of securities companies in our country,and describes the status quo of the diversified development of securities companies in our country as well as their business performance and risk.In recent years,the contribution ratio of innovation business to total income of securities companies in our country has been gradually increased and the diversification deepened.However,the development of innovative businesses is still at an early stage.The regulatory restrictions and the mismatch of some systems have restricted the development of innovative businesses.In the fourth chapter,the empirical analysis shows that business diversification and business performance are inverted U-shaped,and the risk is U-shaped relationship,and at the present stage are in the inverted U-shaped(U-shaped)on the right,indicating that the current securities companies in China The reliance on traditional business is still relatively large.With the deepening of diversification,China's securities companies need enormous financial support.The size of the securities companies in our country is generally small,and the diversified development of innovation shows a lack of stamina.The business diversification risk diversification effect is strong during the sample period,but there is a trend of hedging risks brought by new businesses gradually at this stage.The empirical results also show that the financial leverage ratio,cost-income ratio,etc.also have some impact on the performance of our securities companies and risks.In the future diversification of securities companies in China,more attention should be paid to cost management,risk control,utilization of financial leverage,rational expansion of scale and regulatory efforts.All parties should cooperate to promote the upgrading and transformation of securities companies in China and the healthy development of China's securities industry.