A Study On The Relationship Between Market Structure,Efficiency And Performance Of China's Securities Industry

With the development of economy and the change of industry,the market structure of securities industry is changing constantly.This paper studies the relationship between market structure,efficiency and performance of China's securities industry.For the relationship between market structure and market performance,the two most important hypotheses in industrial organization theory are market power hypothesis and efficiency structure hypothesis.Market power hypothesis is divided into SCP hypothesis and relative market power hypothesis.Efficiency structure hypothesis is divided into X efficiency structure hypothesis and scale efficiency structure hypothesis.This paper incorporates efficiency variables into the study of the relationship between market structure and performance,and empirically tests the existence of these four hypotheses in China's securities industry.Firstly,this paper studies the market structure of China's securities industry,calculates and analyses the market concentration.Then we use DEA method to measure and analyze the efficiency of our country's securities companies.Finally,an empirical model is established to analyze the relationship between market structure,efficiency and performance of China's securities industry in order to test whether there is market power hypothesis or efficiency structure hypothesis in China's securities industry.The research finds that the concentration of China's securities market is on the rise,but the concentration level is still relatively low.The overall efficiency level of China's securities companies is low,and the low pure technical efficiency is the main reason for the low technical efficiency of securities companies.According to the results of regression analysis and hypothesis test,from the perspective of market structure,there is a negative correlation between market concentration and performance.The higher the market concentration,the lower the market performance.Securities companies can not obtain excess profits with the increase of market concentration.Market share has a significant positive correlation with the performance of securities companies.SCP hypothesis and relative market power hypothesis are testified in China.Neither securities market is established.From the point of view of efficiency,pure technical efficiency and scale efficiency have significant positive effects on the structure of securities market.The operating performance of securities companies with higher technology,management level and scale efficiency is better,but technical efficiency has no significant impact on market share and market structure.Scale efficiency has a significant negative correlation with market share,and has no significant impact on market structure.The structure hypothesis and the scale efficiency structure hypothesis are also not valid in China's securities market.Combining with empirical research,this paper puts forward some suggestions for the development of securities companies and the policy recommendations for the supervisors to promote the healthy,stable and efficient development of China's securities industry.