An Empirical Study On The Influence Of Internal Governance And Business Structure On The Performance Of Listed Securities Companies

As an intermediary agency of China's capital market,securities companies play a key role in the development of market functions.The current domestic and international economic situation is constantly changing,and the challenges faced by China's securities companies are increasing.With a series of milestone events have been completed,such as the completion of the A share split reform,the IPO transition from the approval system to the registration system,the establishment of the QFII system,the establishment of Shanghai-Hongkong and Shenzhen-Hongkong Stock Connect,and A shares included in the MSCI emerging markets index.China is gradually deregulation of the capital market,and A shares are gradually becoming internationalized.Under such a background,China's securities companies will compete more with international investment banks.This is a great opportunity for China's securities companies to develop into world-class investment banks,and,of course,face major challenges.In this context,it is of great significance to choose the performance of the securities company to carry out the research.This paper argues that the main internal factors affecting the performance of securities firms are internal governance and business structure,the two factors are equally important,it should be studied at the same time.This paper builds the research framework according to the idea of "Theoretical Basis-Analysis-Comparative Analysis-Empirical Analysis-Policy Recommendations".The first part of the introduction includes the background and significance of the research,the status of research at home and abroad,the content and method of research,and the innovation and deficiency.The second part gives an overview of the related theories,including the principal-agent theory,the theory of control right,the theory of business diversification and the theory of financial innovation.The third part is the development status of China's securities companies and the comparative analysis of the development of American investment banks.The fourth part is an empirical analysis of the impact of the performance of listed securities companies in China.Finally,the conclusion of this paper and the development proposal of the securities company's business.The empirical analysis is mainly based on the impact of fourth parts of the performance of listed securities companies in China.On the basis of theoretical analysis,we select the 12 financial indicators of listed securities companies from 2010 to 2017,and put forward hypotheses for the problems to be studied.Then extract the sample data fromthe database,the annual report and website designated,variable definition and measurement,Finally,the model of multiple regression model is set up,and the relevant variables are analyzed and analyzed by using Eviews8 software tools,and the analysis of the reasons for the empirical results.Finally,the following conclusions are drawn: first,the development time of China's securities companies is short,and the proportion of the listed securities companies by backdoor listing is large.The securities company has a single business source,a serious and homogeneous business,and a serious unbalance of its business structure.Second,The ownership concentration of listed securities companies has a negative correlation to the performance of the company,and the balance of equity has a positive correlation with the performance of the company.Third,The size of the board of directors of listed securities companies is directly proportional to the company's performance.This shows that the number of board of directors of China's listed securities companies is at a low level of reasonable value,and the appropriate increase of the number of board is conducive to the improvement of performance.The proportion of independent directors is directly proportional to performance.This shows that the quality of independent directors of listed securities companies is not optimistic.Maybe some independent directors have not done their due responsibilities.The fourth is that the degree of business diversification is positively correlated with business performance,especially sales net interest rate.It indicates that innovating new businesses under the background of financial innovation is a effective way to improve business performance.For the market concentration,the traditional brokerage business business is very mature,the high degree of concentration is conducive to continue to be profitable,and most concentrated or innovative business market is to try and carry out,there is a big risk,but this is the process to go through.Finally,some suggestions are put forward: The first is to strengthen the supervision and improve the governance system.Second is to strengthen the supervision of the large shareholders and give full play to the effect of equity balance.Then we should optimize the governing structure of the board of directors and improve the system of independent directors.Finally,we should vigorously carry out business diversification,prudent and reasonable management.The above suggestions are expected to provide help for the healthy development of China's securities companies.