All the nominal figures in this research are adjusted to real figures on the base year of 2006. In Table 6, the descriptive statistics shows the firms’ characteristics. There are two types of trading in which 1 represents listed firms (TSE and OTC) and 0 represents unpublicized firms. In financial holding category, 1 represents that a securities firm is under a financial holding company and 0 represents that a securities firm is not under a financial holding company. In the year item, 1 means that the year measured is after 2008 and 0 means that the year measured is before 2008. In output and input data, the mean of output variable total revenues is NTD 2,141,675.04 thousand and the means of input of stakeholder equity,
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operational expenses, labor and total fixed assets are NTD 6,306,593.35 thousand, NTD 891,644.09 thousand, 514 employees, NTD 718,712.59 respectively. Table 2 lists the correlation coefficients among input and output variables. We can see that there is high correlation between these variables.
Table 6 Description statistics of all variables
Variable N Mean S.D. Min Max
Output
Total revenues(NTD thousand in 2006) 399 2141675.04 1656440.42 1.04 12559183.4
Input
Stakeholder Equity
(NTD thousand in 2006) 399 6306593.35 10902848.2 102149.39 72126503.3 Operational Expenses
(NTD thousand in 2006) 399 891644.09 1480379.06 14044.79 8758688.25
Labor(number) 399 514 805.94 15 4500
Total fixed assets
(NTD thousand in 2006) 399 718712.59 1213258.2 199 7512274.44
Environmental
Variables
Type of trading 399 0.1401 0.3478 0 1
Financial holding 399 0.2281 0.4201 0 1
Risk-based Capital 399 0.5628 0.3152 0.14 2.03
Age 399 25.26 7.6426 10 53
Year 399 0.5714 0.4954 0 1
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Table 7 Correlation coefficient among the output and input variables
VariableFigures 2-5 show the trends of efficiency scores in using different inputs. First, Figure 2 shows that there is a bad performance after 2008 when using stakeholder equity. Hence, it shows a downward trend of the efficiency of using stakeholder equity. However, Figures 3-5 indicate good performance after 2008 when using operational expenses, labor employment and total fixed assets. Therefore, we can find an upward trend of the efficiency of using operational expenses, labor employment and total fixed assets.
Figure 2 Efficiency Scores in Using Stakeholder Equity
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Figure 3 Efficiency Scores in Using Operational Expenses
Figure 4 Efficiency Scores in Using Labor Employment
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Figure 5 Efficiency Scores in Using Total Fixed Assets
Tables 8-11 list the influences of environmental variables toward every single input variable. In Table 8, we can see that the type of market has a positive effect toward the inefficiency of stakeholder equity which means that securities firms that are listed have worse performance than those who are not. Also, financial holding has a positive effect toward the inefficiency of stakeholder equity which means that securities firms that under financial holding company have worse efficiency scores than those who are not under financial holding company. However, risk-based capital has a negative effect on inefficiency which means that securities firms that are with higher risked-based capital will have higher efficiency scores.
The company age have a positive effect on efficiency of stakeholder equity. Therefore, older securities companies have worse performance than younger securities companies in the use of stakeholder equity. Last, year has a positive effect on the inefficiency of using stakeholder equity. This result shows that securities firms have worse performance after 2008 which the whole world is experiencing the financial crisis.
Table 9 shows no specific environmental variables which have significant influences on the efficiency of usage of operational expenses. In Table 10, the type of market, financial holding and risk-based capital have positive effects on the usage inefficiency of labor employment. However, company age and year have no significant effects on the usage inefficiency of labor employment. In Table 11, the market type, financial holding and company age have negative influences on the inefficiency of using total fixed assets. While, the risk-based ratio has a positive effect on the usage inefficiency of total fixed assets.
Therefore, securities firms who have higher risk-based ratio have worse performance in using total fixed assets.
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Table 8 Stochastic production frontier estimation results on stakeholder equity Variable
Estim at ed P aram et er Standard Errort-value
*** represents 1% level of significance.
Table 9 Stochastic production frontier estimation results on operational expenses Variable
Estim at ed P aram et er Standard Errort-value
*** represents 1% level of significance.
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Table 10 Stochastic production frontier estimation results on labor employment Variable
Estim at ed P aram et er Standard Errort-value
*** represents 1% level of significance.
Table 11 Stochastic production frontier estimation results on total fixed assets Variable
Estim at ed P aram et er Standard Errort-value
*** represents 1% level of significance.
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The rankings in efficiency scores of the same energy source obtained from the SFA models are all stable over time. The average efficiency scores in various inputs during 2005-2011 are: stakeholder equity (0.574911), operational expenses (0.986238), labor employment (0.842117), and total fixed assets (0.413766). It is obvious that the efficiency of using stakeholder equity and total fixed assets are needed to improve very much.
The top five efficient securities firms of using stakeholder equity are Wall Street Securities Corp. (0.976), Chuan Tai Securities Co., Ltd. (0.958), Sunny Securities Co., Ltd (0.799), Vantone Securities Co., Ltd (0.772), and Full Long Securities Co., Ltd (0.756). The top five inefficient securities firms of using stakeholder equity are Jih Sun Securities Co., Ltd (0.356), Mega Securities Co., Ltd. (0.423), SinoPac Securities Corporation (0.424), Fubon Securities Co., Ltd. (0.427), and Horizon Securities Co., Ltd. (0.428). The range of efficiency score between the best and the worst securities firms is 0.62 which is quite large.
The top five efficient securities firms of using operational expenses are Jin Sun Securities Co., Ltd. (0.99293), Horizon Securities Co., Ltd. (0.99291), IBT Securities Co., Ltd.
(0.99249), Oriental Securities Corporation (0.990059), and Ying Yi Securities (0.987875). The top five inefficient securities firms of using operational expenses are Cathay Securities Corporation (0.976406), Shing Fong Securities Co., Ltd (0.977166), E. Sun Securities Corp.
(0.980286), Pei Cheng Securities Co., Ltd. (0.980739), and Da-Din Securities Co., Ltd (0.980959).
The top five efficient securities firms of using labor are IBT Securities Co., Ltd. (0.913), Grand Cathay Securities Corp (0.908), KGI securities Co., Ltd. (0.907), Primasia Securities Company Limited (0.9019), and Kuang Long Securities (0.9016). The top five inefficient securities firms of using labor are Taishin Securities Co., Ltd. (0.747), Cathay Securities Corporation (0.756), Chinatrust Securities Co., Ltd. (0.771), E.Sun Securities Corp. (0.772), and Yuanta Securities Co., Ltd (0.778).
The top five efficient securities firms of using total fixed assets are First Securities Inc.
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(0.869), Taishin Securities Co., Ltd. (0.864), Fubon Securities Co., Ltd (0.862), Yuanta Securities Co., Ltd (0.861), and Jin Sun Securities Co., Ltd. (0.845). The top five inefficient securities firms of using total fixed assets are Chuan Tai Securities Co., Ltd. (0.0225), King Fong Securities Co., Ltd. (0.0278), Chung Nourn Securities Co., Ltd. (0.0312), Jee Mach Securities Co., Ltd. (0.0346), and Vantone Securities Co., Ltd. (0.035). The range of efficiency score between the best and the worst securities firms is about 0.847 which is quite large. Therefore, securities firms with lower efficiency in using total fixed assets need to consider how to reallocate their resources and catch up with those who have better performance.
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