| dc.description.abstract | After the year of 1998, the competent authority made the establishment of securities firms, the securities brokerage business in our country has fully developed for more than 30 years. Moreover, a great number of new securities brokerages established from 1988 to 1990. After that, due to the burst of the bubble of the stock market, the securities firms operated miserably. Under the influence of Covid-19, in 2020, Taiwanese stocks rose a lot and the profits of securities firms increased.
Limited by the little difference in the products and services that securities firms can provide, to gain market share, various securities firms expand their business. They also had integration through mergers and acquisitions, business transfer, etc. to increase the scale of their operations and reduce operating costs through economies of scale.
The development of the securities brokerage business in our country has matured. The competent authority adopted a higher supervision model for securities firms than the banking industry. Therefore, when securities firms face the turbulent international financial situation. Due to the low degree of internationalization, the crisis can be overcome safely. At present, securities companies are deeply affected by the trading volume of the domestic securities market, brokerages compete for homogeneous business with handling fees. Some high-asset customers have limited domestic investment products and then turn to large foreign securities firms for more options. As a result, local securities firms have gradually lost business opportunities to provide full-service services.
This study uses the (Structure-Conduct-Performance, S-C-P) to build the theory in industrial economics. This study analyzes the market structure, firm behavior, market performance of the brokerage industry of securities firms and the development status of the brokerage industry. Also, through analyzing the evolution trend and future of the brokerage business offers the response policies and suggestions.
The results of the study found that the structure of securities brokerage industry of our nation is the type of exclusive competition market. In the future, digital platforms will become the main channel for securities companies and the heterogeneity of brokerages will increase. In terms of behavior, after a securities firm merge with others, increased market share can achieve economies of scale. Compared with other securities companies, it can obtain the cost advantages and also the trend of huge scale of huge securities firms resulting from mergers and acquisitions. And when the brokerage is carrying out the diversification strategy. It can expand the economic benefits of the business, achieve the effect of category economy and scale economy, also improve overall profit margins. In terms of performance, on the whole, the operating performance of the securities firms of our nation still needs to be improved. With the increasing popularity of digital and the behavior change of investors, securities firms must have a transformation through the combination of finance and technology, then providing a full range of services to adapt to the times and stay ahead of the curve. | en_US |