Abstract
Accurate assessment of the efficiency of securities companies is of great significance to improve the competitiveness of companies, due to their increasingly important role in supporting economic development. As the main contribution, this paper proposes a novel efficiency estimation framework for securities companies based on data envelopment analysis (DEA), which takes into account operational risks and technical heterogeneity. First, the risk variable is incorporated in the evaluation system as an undesirable output through the setting of weak disposability. Subsequently, the meta-frontier model is introduced to consider the impact of the technical heterogeneity of different companies to improve the accuracy of the assessment. Furthermore, this article also provides the meta-frontier Malmquist model, which can be utilized to analyze in detail technological progress. Finally, the securities companies listed in the Chinese stock market were selected as samples for empirical analysis. The efficiency evaluation model for securities companies proposed in this paper will provide a reference for related evaluation issues.
Highlights
As the capital market comes of age, securities firms are playing an increasingly important role in sustaining market operations, maintaining a sound market environment and supporting the development of the real economy
An efficiency evaluation model will be built on the basis of the slack-based model (SBM) and the meta-frontier model, and efficiency decomposition parameters will be constructed from the perspectives of managerial and technical inefficiencies
This study proposes an improved meta-frontier SBM model with the weak disposability setting of undesirable output, which is shown in model (3)
Summary
As the capital market comes of age, securities firms are playing an increasingly important role in sustaining market operations, maintaining a sound market environment and supporting the development of the real economy. The efficiency of these companies, will exert a direct influence on areas such as capital distribution in the market and the efficiency of investment and financing, which will subsequently affect the stability of economic development [1]. This policy will significantly increase competition among Chinese securities companies Against such a backdrop, research into the efficiency of Chinese securities firms is highly relevant to improving the managerial efficiency of businesses, boosting corporate competitiveness and maintaining the sustainable development of the financial system. How to scientifically evaluate the operational efficiency of China’s securities firms and enhance their competitiveness has become a major research topic
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