The Influence Of The Entry Of Foreign Securities Companies On The Operational Efficiency Of My Country’s Securities Companies

In recent years,the degree of opening up of my country’s securities industry has continued to deepen.In April 2018,the "Administrative Measures for Foreign-Invested Securities Companies" was officially announced.With the implementation of the measures,the entry restrictions on foreign securities companies in my country were further relaxed,and foreign securities companies actively entered the domestic market.The external competitive environment faced by my country’s securities companies has changed,not only the domestic competition,but also the challenges of international well-known securities companies and investment banks.In this context,it is of great practical significance to study the impact of foreign securities firms’ entry on the operating efficiency of my country’s securities companies for promoting the development and progress of my country’s securities industry.This paper theoretically analyzes the impact of the entry of foreign securities companies on my country’s securities companies.The entry of foreign securities companies will intensify market competition and bring about the "catfish effect",which will force my country’s securities companies to transform and upgrade,and improve their management capabilities.Foreign securities companies’ advanced technology and Rich management experience will spill over to the Chinese market,and then produce a "spillover effect".Chinese securities companies can improve their own management level through demonstration and learning,and the talent flow mechanism.Foreign securities companies can use the "cherry picking" strategy when competing in the Chinese market,that is to use its own advantageous business to grab market share,thereby increasing the operating pressure of domestic securities companies.This paper empirically analyzes the entry level of foreign securities companies and the impact of the relaxation of entry restrictions on the operating efficiency of my country’s securities companies.Selecting the panel data of 100 securities companies in my country from 2007 to 2020,using the three-stage DEA model to measure the operating efficiency of securities companies,as well as the decomposed pure technical efficiency and scale efficiency,the dependent variables of this paper are obtained.The entry level of foreign securities companies and the relaxation of entry restrictions As the independent variable,the control variable was selected according to the existing research,and the multiple linear regression model was constructed.In addition,in order to solve the endogeneity problem,the entry level of foreign securities firms as the independent variable is treated with a lag of one period.Regression analysis was performed using fixed effects with panel-adjusted standard errors,and further robustness tests were performed.The research shows that:(1)The entry of foreign securities companies can significantly improve the operating efficiency of Chinese securities companies;(2)From the perspective of the decomposed operating efficiency,the entry of foreign securities companies mainly improves the overall operating efficiency by improving the scale efficiency of Chinese securities companies.Technical efficiency has a positive impact,but the impact is not significant;(3)The relaxation of foreign securities companies’ entry restrictions is conducive to improving the operating efficiency of Chinese securities companies,and has a significant positive impact on both pure technical efficiency and scale efficiency;(4)The impact of the entry level of foreign securities firms on the operating efficiency of my country’s securities companies is greater than the impact of the relaxation of entry restrictions on the operating efficiency of my country’s securities companies.Based on the research conclusions,this paper believes that Chinese securities companies should respond to the opportunities and challenges brought by the entry of foreign securities companies from the following three aspects,and improve their own operating efficiency: optimizing income structure,improving service efficiency,and improving risk management.Relevant regulatory agencies should take the initiative to expand the opening of the securities industry,improve the structure of the securities market and the regulatory mechanism for the entry of foreign securities firms.