China's Securities Business Diversification Effects On Its Performance

Securities companies,as financial intermediaries,have made great contributions to the development of China's financial industry.The rapid development of the capital market,the impact of Internet finance and the reform of the floating commission system have made the development space for traditional business of securities companies smaller and smaller,coupled with the gradual relaxation of the mixed operation system,other financial institutions such as banks have also begun to develop securities business.Make the profit margin of securities companies smaller.The unreasonable business structure setting within the securities company and the increasingly tense external competitive environment have forced China's securities companies to continuously demand new profit channels and actively carry out business diversification reform.Diversified operation is bound to have a profound impact on many aspects of the securities company's business model,profit channels,and development prospects.Under this background,it is of great practical significance to study the impact of the diversification of securities companies on their operating performance.This article takes China's listed securities companies as the research object,on the basis of sorting out the research literature on the relationship between business diversification and operating performance,and taking the securities company's business structure as an entry point,through the recent years of China's securities companies' business development status and After a preliminary analysis of the status quo of performance,the hypothesis that the business diversification has a non-linear relationship with the operating performance of the securities company is proposed,and the panel data model is used for empirical analysis and robustness testing.The results show that there is a non-linear relationship between the degree of diversification and operating performance of China's securities companies,which is inverted U-shaped,and it is found that the degree of diversification of China's securities companies is too high to improve the performance of securities companies.Finally,for the phenomenon that China's securities companies are overly diversified,we put forward specific suggestions: securities companies should not blindly expand their business,but should focus on the coordination and integration of existing businesses and strengthen internal management to improve theperformance of securities companies.