Analysis Of The Impact Of Comprehensive Governance Level On The Operating Efficiency Of Listed Securities Companies

Nowadays,China's economy has entered a new normal,and it is transitioning from high-speed development to high-quality development.Efficiency has been put in a key position.Securities companies in the capital market have played an irreplaceable role in the process of economic development transformation.However,the current violations of securities companies are still common.This not only exposes the internal governance of the company,but also forces the continuous strengthening of external supervision.In this context,what should securities companies do next? X Securities Co.is an established brand of listed securities with a history of nearly 30 years.It has continued to meet high standards in external risk supervision indicators,but in recent years,it has been plagued by frequent occurrences of operating violations and the decline in classified regulatory ratings.Operating efficiency is also hovering at the end of the industry.In this regard,this article analyzes the internal governance system of X Securities Company in the case analysis section and finds that the frequent reasons for its violations are mainly due to the insufficient implementation of the internal control system,the low internal control efficiency,and ultimately the improvement of operating efficiency;X Securities Company also bears a high “regulatory tax”,which leads to an increase in compliance costs and also has a large negative impact on operating efficiency.Based on the analysis of the impact path of comprehensive governance level on efficiency,this paper makes two research hypotheses,which are finally verified in the empirical part.It is found through research that the level of internal governance of X Securities Company is low,and it is almost consistent with the rising and falling trend of its classified regulatory rating.It ranks very low in the operating efficiency ranking of all 36 listed securities companies,and does not match its own development scale and capital strength.It can be found in the empirical evidence that the level of internal governance and efficiency are significantly negatively correlated,and a few external regulatory indicators have a significant negative correlation with efficiency.Based on the empirical conclusions,this article puts forward several general applicability suggestions on how to improve the efficiency of securities companies.First,to improve the efficiency of securities companies,the most important thing is to improve the efficiency of internal governance and external supervision to achieve appropriate internal governance and maximize efficiency with external regulatory inputs.Second,attention should be paid to the size of compliance costs.Under the premise of ensuring safety,excess funds can be used for company operations to help improve efficiency.Third,innovation in traditional businesses transformation should also be placed at the top of the company's internal reforms,thereby improving the company's ability to resist systemic risks.In addition to securities companies,this article also puts forward four suggestions to the supervisory authority: First,the supervisory authority should also take into account the development of securities companies while stabilizing the capital market,and play the role of "Leader" and "Carer".Second,we should continue to improve the current risk supervision system,and stripping off regulatory indicators with insignificant supervision.Third,accelerate the transition from “punitive” supervision to “incentive” supervision,and promote business innovation of securities companies.Fourth,innovate the design of the supervision mechanism to eliminate the asymmetry in rewards and punishments of the supervisory authorities.