Profitability Analysis Of China’securities Companies Based On Dupont Analysis

In recent years, the development of capital market has led to increased competition in financial industry. In addition, the introduction of new institutions and products also make financial industry change quickly. That how to deal with the impacts from all parties, as well as how to rely on core competitiveness to be undefeated and achieve sustainable development in a new competitive environment, has become a problem securities company have to consider. Combining the classical DuPont Financial Analysis System with statistical methods. in this paper we analyze the financial indicators affecting operating efficiency of securities company from a financial view.First, we make a brief introduction about current competitive situation of China’s securities market, illustrating the significance of our research. And review the research results about securities company efficiency of former scholars so as to grasp the current research situation in this area at home and abroad. Then, we introduce some basic theoretical knowledge of DuPont analysis methods, and combined with the specific circumstances of the securities company, we decompose financial indicators of DuPont Financial Analysis System. Thus we get Du Pont Analysis System suitable for such securities company, and select several representative financial indicators as the factors affecting the efficiency of securities company. Finally, we construct regression model to do empirical analysis on these indicators to get the influence of the indicators on the dependent variable.From this study, we find securities companies need to maintain a healthy and reasonable capital structure, to strengthen the development of new business, and to build a diversified business structure, because heavily depending on traditional business has negative effects on profitability. In the end, we point out the shortcomings of this article.