Efficiency Estimation Of Securities Company Based On Stochastic Frontier Approach

As an important participant in the financial markets institutions, the healthy growth of securities is related to China's capital markets and national economic development event. In the future competition, a necessary requirement for an open environment is that China's securities companies pay more attention to the enterprise's own management and efficiency. In view of the healthy development of securities companies for the development of China's securities market,development of capital markets even the national economy, This paper will use the stochastic frontier approach (SFA) to explore and analysis the efficiency of China's securities companies. Based on the results of its operational efficiency, the author gives suggestions for improvement; provide some reference to hope to provide some reference to increase China's securities companies operating efficiency.The research object of this study is the 12 listed securities company, this paper's idea is based on the general study of Battese and Coelli (1995) proposed stochastic frontier analysis to build a securities companies cost-evaluation model of inefficiency and inefficiency factor assessment model and use maximum likelihood estimation method, estimate that the cost of the sample securities firms inefficiency value in 2002-2008, estimate coefficients of the two models at the same time. It is quantified and compared according to empirical results on the inefficiency of securities companies and the inefficiency factors. This empirical study found that Haitong Securities'operating efficiency is the lowest of 12 securities. Optimal operational efficiency is the three securities companies:Guotai Junan Securities, CITIC Securities, Qilu Securities. As the only integrated brokerage, Qilu Securities operated efficiently.The paper carried out a detailed analysis of the ineffectiveness factor of security companies and found that there is a positive correlation between the inefficiency and company size, equity concentration of securities firms, as while, there is negatively correlated with the current ratio, the proportion of undergraduate or more employees. It also gives recommendations to enhance the efficiency of securities firms:improve and perfect the profit model, expand financing channels, to promote asset management business innovation, optimize core business, to attract high-quality talent, the introduction of strategic investors.