Research On The Influence Of Compliance Management On The Operating Efficiency Of Securities Companies

Securities industry is the c~Aor~be ~so~tf ~rm~aod~ce~trn finance,and with the rapid development of our country’s economy,its role in our finance industry becomes more and more prominent.As the main component of the financial market,the securities industry,together with the banking industry and the insurance industry,plays a driving and lubricating role in the development of the national economy.In recent years,the domestic and foreign economic development situation is complex and severe.In the process of their own development,securities companies(securities firms)are faced with not only their own internal problems,but also the challenges and threats of domestic and foreign environmental changes.In order to cope with the increasingly complex market competition environment,compliance management is the aspect that it needs to focus on.The compliance of securities companies is the minimum requirement of laws and regulations for their operation.In recent years,more and more laws and regulations on compliance have been issued at home and abroad.Take foreign countries as an example.In July 1998,Basel Committee on Banking Supervision promulgated its first standard,called"1998 Consistent Guidelines on Capital",which stipulated the regulatory requirements on bank capital and risk,aimed at reducing the credit risk of banks in the process of operation,that is,stipulated the minimum capital requirements to prevent credit risk.In China,since 2007,China Securities Regulatory Commission began to implement classified supervision of securities companies,including the compliance and risk management capabilities of securities companies into a classified rating system,requiring securities companies to carry out effectiveness assessment of compliance management,and promote the compliance management of securities companies.Therefore,when evaluating securities brokers,we need to evaluate the results of their compliance management.The classification supervision of securities brokers also promotes the compliance management of the securities industry in our country.This paper uses the three-stage data envelopment analysis(DEA)evaluation method in management science,focusing on the impact of management inefficiency on the operating efficiency of securities companies(including comprehensive technical efficiency,pure technical efficiency and scale efficiency),and uses China Securities Regulatory Commission to classify the rating results of securities companies for the first time.This article quantifies the achievements of compliance management for the first time and uses Tobit regression to discuss the influence of the achievements of compliance management on the operating efficiency of securities industry in our country.First of all,this paper expounds the current situation and operating efficiency of domestic and foreign securities companies’compliance management,and introduces the theory of compliance management,the definition of compliance management,compliance penalty and compliance penalty index calculation.Secondly,this paper summarizes the measurement methods and indicators of the operating efficiency of securities companies,and gives the sample securities firms,the measurement methods of operating efficiency,the input-output indicators and the environmental indicators.Moreover,in the empirical analysis of the operating efficiency of securities companies,this paper uses the three-stage DEA model and measures the operating efficiency of securities companies based on the operating data of 94 securities companies from 2017 to 2021.In the first and third stages,DEA method is used to measure the operating efficiency of securities companies.In the second stage,SFA method is used to eliminate the influence of random disturbance items(including environmental impact and statistical noise)on the operating efficiency of securities companies.The average operating efficiency can represent the securities industry by selecting all sample securities brokers that persist in our country.It is found that,from the perspective of time cross-section data,the comprehensive technical efficiency and scale efficiency of Chinese securities firms decrease obviously after removing random disturbance items,while the change of pure technical efficiency is not obvious.From the perspective of the panel data of time,before and after removing the random disturbance item,from 2017 to 2021,the operating efficiency of securities firms generally rose first and then declined,and the node that started to decline was the outbreak of the global epidemic in 2019.Then,with the help of Tobit regression model,this paper studies the relationship between compliance management results and operational efficiency.It is found that the results of compliance management significantly affect the operating efficiency of securities companies,namely:the development of compliance management significantly affects the comprehensive technical efficiency of Chinese securities companies;From the perspective of decomposition efficiency,compliance management results affect the comprehensive technical efficiency mainly by affecting the scale efficiency of securities companies,and have a negative impact on pure technical efficiency but not significant.Finally,based on the results of positive analysis,this paper gives some suggestions on the development of securities industry and securities firms.