A Study On The Relationship Between Group Development And Operating Efficiency Of Chinese Securities Companies

Along with the continuously strengthen of global financial integration, the financial institutions of all countries start to expend scale and mix management for competitiveness promotion, to continuously increase staff number and establish a large financial group through method such as a merger or a new setting. As an extremely important portion of the financial industry, the securities industry is also facing the huge impact from the trend of the collectivization. According to the current development of the international securities industry, the world’s leading securities companies have achieved a high degree of collectivization, this kind of large securities companies adopt diversified management, they own many sub-companies such as futures, asset management, fund companies. In the environment of increasing openness, Chinese securities companies have more opportunity to compete with international securities companies. Therefore, it’s necessary for Chinese securities companies to meet coming challenge through continuously enhancing collectivization.In 1987, The first securities company founded in China. There are 154 securities companies till 2004, then, the number change to 124 in today. In just three decades, Chinese securities companies achieved growing out of nothing and development from small to large. Since 21st Century, with the intensively economic globalization and the continuously development of Chinese capital market, Chinese securities companies strengthen collectivization, however, along with the practice of collectivization, the debate on whether strengthen collectivization is able to improve Chinese securities companies’ operating efficiency always existed. The first opinion is collectivization is harmful to our securities companies, the main reason is our securities companies is too young to achieve high effective management, the blinding collectivization will block the improvement of operating efficiency. But the major view shows that the collectivization is helpful on operating efficiency improvement, they think Chinese securities companies should expedite the collectivization. Therefore, In this article, I use the DEA and Malmquist empirical analysis to verify above two opinions.The research idea of this paper is as following:Firstly, I will define the basic concepts of collectivization and operating efficiency. Collectivization refers to one company which has parent companies, sub-companies and affiliated companies. Operating efficiency is the relationship between input and output. Secondly, I will select 52 securities companies with market share above 80% as Chinese securities companies’ typical example, and divide them into two groups. One group is high collectivization and the other one is low collectivization. In the end, I will analyze and compare the sample data in the period from 2010 to 2014 by DEA and Malmquist. The research results from both static analysis and dynamic analysis indicate that:collectivization is helpful to improve the operating efficiency of securities companies.