Study On Operational Efficiency Of Securities Of China

Since China's securities market becomes more open, securities companies are confronted with increasingly pierce competition. This paper analyses the operating efficiency of China's compositive securities companies by the means of theoretical and empirical research. Its main contents are:(1) To summary the efficiency of financial institutions and foreign scholars on the basis of domestic and abroad study, it defines the efficiency of the securities company content; (2) In empirical point of view, uses data envelopment analysis (DEA), Stochastic Frontier Analysis (SFA) and the Malmquist index to estimate the efficiency of China's compositive securities companis from 2006-2008, it also makes transverse and longitudinal comparison of these years; (3)From four facets including macro economy, open economy, capital markets and securities firms to discuss the main factors which impacts the efficiency of the compositive securities companies in theoretical way, then uses variance analysis, regression analysis and other methods of quantitative analysis to operate empirical test. (4) Inducing from reserch results above, proposes some advices to improve the efficiency of China's securities companies countermeasures.Conclusions:After analysis, the main conclusions of the study come to the following:1. Ownership concentration of securities companies had significant negative effects on the technical efficiency, as contrast, the number of sales departments is the important factor of securities companies, the greater the number is, the higher efficiency of the securities companies will be.2. The technical efficiency of China's securities companies have made a steady growth in the 3 years, but a dramatic decline in resources allocated efficiency operational efficiency leads to a decline in the industry as a whole.3. Technical efficiency of China's securities companies increased should be mainly attributed to pure technical efficiency and scale efficiency of steady growth.4. The 41 securities companies Malquist index analysis showed that the overall production efficiency of China securities industry has experienced in the first three years and then dropped the trend, quite significantly.5.Analysis results in this article and well-known image of the big brokerages are inconsistent. Countermeasure suggestion:This paper puts forward the following policy recommendations:1. Change the securities companies'profit mode to improve the anti-risk ability of them, thus promoting their sustainable developments.2. Implement new incentive mechanisms to adjust the salary structure of managers and other employees, and reinforce the long-term incentives.3. Enhance the ability of risk control, then establish internal control system which is well-functioning and efficient to improve the efficiency of securities companies.4. Set up the supervising and monitoring system of securities companies to regulate the behavior of them, which should comply with the international conventions.