Research On The Influence Of Business Diversification On The Operating Performance Of Securities Companies In China

In recent years,China has gradually promoted the reform of capital market,and financial innovation has been emerging constantly.Securities companies are facing the pressure of technology and service improvement.With the further opening of the financial market,many foreign securities companies enter the domestic market,which makes the domestic securities companies face more fierce competition.Under the situation of internal and external worries,securities companies have to transform and upgrade,add innovative business,and develop diversified business.In particular,China's securities companies held the innovation conference in 2012,the rapid development of securities companies' innovative business,which is both an opportunity and a challenge for securities companies.In this context,this paper takes the business structure of China's securities companies as the entry point to study the impact of business diversification of China's securities companies on their business performance.In this paper,the annual data of 24 listed securities companies in China in 2011-2017 were taken as the sample,the adjusted herfender index was used to measure the degree of business diversification,and the return on assets,return on equity and operating margin were used as the operating performance indicators respectively to establish the panel data regression model.It is found that there is an inverted u-shaped relationship between the degree of business diversification and business performance,that is,when the degree of business diversification of securities companies is low,the company's business performance will increase with the increase of the degree of business diversification.When the degree of business diversification exceeds a certain critical value,the company's operating performance will decline if the degree of business diversification is increased.Finally,this paper puts forward some reasonable Suggestions according to the research conclusions.China's securities companies should reasonably arrange business,develop business according to their own conditions,and cautiously expand diversified business;Find their own positioning,give play to their own advantages,take the characteristics of the business road.The regulatory authorities should emphasize policy guidance,introduce policies to guide the rational development of securities companies,encourage securities companies to take the road of differentiation,and implement differentiated supervision for different types of securities companies.