A Study On The Relation Of Market Structure,Enterprise Efficiency And Performance In China's Securities Industry

With the reform and opening up,the securities market at home has enjoyed substantial development.This paper focuses on the relationship between market structure,enterprise efficiency and performance in China's securities industry.Market structure and market performance are the two most important topics in the theory of industrial organization.In the theory of industrial organization,the two most significant hypotheses are the Market Power Hypothesis of the Harvard School and the Efficient Structure Hypothesis of the Chicago School.This thesis will put the efficiency variable into the research of the relationship between market structure and performance,and conducts an empirical research on the two hypotheses in China's securities industry.The paper first studies the market structure of China's securities industry,calculates and Analysis's the market concentration.Then,using DEA method to measure and analyze the efficiency of China's securities industry on the basis of 53 securities companies;At last the thesis establishes equations using the empirical research of Berger Harman(1995),especially analyzing the Market Power Hypothesis and the Efficient Structure Hypothesis using statistic tool to validate China's securities industry.The main conclusions of this paper are:(1)The market structure of China's securities industry still belongs to competitive market,the degree of market concentration is low,the competition is quite intense;(2)The technical efficiency,pure technical efficiency and scale efficiency in China's securities industry are on low side,and all of them are getting better;(3)Efficient Structure Hypothesis is tenable in China's securities industry,but Market Power Hypothesis is untenable. The performance in China's securities industry is mainly due to efficiency(X efficiency and scale efficiency),pure efficiency and scale efficiency are two important factors of the performance in China's securities industry.Market structure(market concentration and market share) is insignificant to the performance;(4)The daily average trading volume is a remarkably forward influence to the performance,and there exist remarkable forward influence between ratio of debt and performance.