Research On The Operating Efficiency Of Chinese Listed Securities Companies Based On The Bootstrap Method

Securities companies play an important and irreplaceable role in the capital market performance and development.Its operational efficiency has a huge impact on the capital market functioning as well as the social resources allocation.Therefore,it is of vital important to accurately measure the efficiency and examine its impact factors.In order to solve the problems of “slack” and influence caused by random factors in the traditional DEA model,we conduct a Bootstrap-DEA model to measure the operating efficiency of China's listed securities companies from 2009 to 2018.The results are as follows:(1)The operating efficiency of listed securities companies is greatly affected by the economy and market fluctuations.The efficiency measured by Bootstrap-DEA and traditional DEA measurement shows the operating efficiency of listed securities companies in China is generally low.The scale efficiency among them reveals the best performance which is followed by the pure technical efficiency and the comprehensive technical efficiency is the worst;(2)The securities industry has a severe “homogeneous” competition problem.Confronted with financial crisis and market volatility,securities companies incline to resize assets of company,rather than improve the management ability and technical service innovation.To further explore the factors influencing the operating efficiency of securities companies and avoid the problems caused by setting errors and error accumulation of empirical methods,this paper applies an empirical model of Bootstrap Truncated Regression to analyze the influencing factors of three kinds of operational efficiencies.The results show that:(1)The revenue share has a “U”-type impact on the operating efficiency.Before achieving a certain market share(9%~12%),the operating efficiency will increase and decrease afterwards;(2)The increase in the proportion of management cost expenditure,including management compensation,can significantly improve the operating efficiency of securities companies,and the impact on the three operational efficiency is relatively consistent;(3)The empirical results also reveal a serious situation of “homogeneous” competition in the securities industry,and the internal governance structure has no significant impact on the company's business innovation and competitiveness.Based on the conclusions mentioned above,this paper puts forward some related suggestions: First,securities companies need to establish a sound crisis prevention and response mechanism to enhance the ability of management in variable market and economic situations.Second,securities companies should focus on differentiated competitiveness by exploring and establishing core competence which are of business innovation,technology innovation and application and high-quality service.Third,establishing and strengthening the incentive mechanism for managers can promote managerial talents and bring their efficient management competence into full play.Fourth,small and medium-sized securities companies might consider expanding market share by merging and acquisition,which can improve operational efficiency.Nevertheless,it's inadvisable to do that by dramatically increase the financial leverage.Fifth,in order to promote the overall competitiveness of the securities industry and avoid the dilemma of "homogenization" competition and "feeding on the sky",regulators might consider increasing the openness of the securities industry and the introduction of foreign capital.