Research On The Profitability Of Securities Companies Based On The Background Of Business Innovation

With the deepening process of China's opening to the outside world,more and more foreign-funded enterprises begin to enter China's various market areas,and the market competition environment becomes increasingly fierce.For enterprises,increasing profit margin and enlarging scale are business objectives,and there are two main ways to achieve business objectives:the first is to do a good job in the main business,highlighting business advantages.The other is operation diversification and diversification of business risks.These two modes of operation have their own advantages and disadvantages,and have different effects on different industries and different periods of development.Securities industry is one of the "troikas" of China's financial industry.After more than 30 years of development,we can find that specialized management can no longer bring new vitality to its sustainable development.Diversified strategic layout is an important driving force for the sustainable development of securities companies.In recent years,many securities companies have diversified their business to seek new profit growth points.However,most of the diversified securities companies did not improve their profitability,on the contrary,because the diversified business led to higher costs and lower profitability.For a long time,the main business income of China's securities companies relies on traditional business,and brokerage business income is the main source of income.This results in a strong correlation between the profitability of China's securities companies and the performance of the stock market.When the stock market is more"hot",trading volume enlarges and securities companies will get more income.This monotonous business model also leads to the current situation of securities companies'profit according to the market.In order to change this situation,securities companies practitioners and regulators have proposed to vigorously develop business innovation,promote the sustainable development of the company through diversified business,and provide vitality for the development of the capital market.In this context,some companies have carried out diversification strategy layout.Based on the above analysis,this paper takes the data of 93 securities firms from 2011 to 2017 as samples,and through multiple linear regression equation analysis,explores the impact of business innovation on the profitability of securities companies,and finds out the problems existing in the development of business innovation of securities companies.Finally,based on the current difficulties encountered by the development of securities companies,this paper puts forward some suggestions,such as creating innovative business,expanding the scale of assets,and speeding up the transformation of the company.