Fund Company Ownership Structure Impact On Fund Performance Study

Along with the continuous development of Chinese capital market, fund management companies play an increasingly important role as institutional investors. Especially with the official enforcement of Securities Investment Fund Law(2004) and The Code of Corporate Governance of Fund Management Companies was promulgated, the fund companies entered into a new historical stage, both the number and the size of the fund companies have a larger growth.As we all know, the shareholders of a company have a significant impact on the company’s operations. A number of scholars had researched the listed companies and found that the company’s ownership structure has a significant impact on the company’s performance. The fund management company is a special class of financial firm, its ownership structure is quite different from the generally listed companies. Whether the ownership structure of the fund management company will directly or indirectly affect the fund performance? This is the main research problem of this paper.This paper first reviewed the development of Chinese fund management companies, analyzed the changing trend of the ownership structure of Chinese fund management companies and gave the analysis of the possible impact of the corporate governance structure on the fund managers. Then, we analyzed the effect of the ownership structure of the fund management company on the overall fund performance. In the course of the studies, we used three indicators to evaluate the fund’s performance and carried out many multiple regression analysis. At last, we found that the proportion of foreign shareholders’shares have a significant negative impact on the overall performance of the fund companies, the proportion of security company shareholders’shares and the fund management companies’ownership concentration have no significant impact on the overall performance of the fund companies. Subsequently, we further studied the effect of the ownership structure of the fund companies on the rate of changes in fund managers. By the relevant empirical analysis, we found that the fund companies’ownership concentration have a significant negative impact on the rate of changes in the fund managers, that is, the higher the concentration of the fund management companies’ownership the lower the rate of changes in fund managers, and the more stable team of fund managers. Finally, we also used the single common stock fund as a sample, studied the effect of ownership structure of the fund company on the fund manager’s selectivity and timing ability. According to empirical analysis, we found that the fund company’ownership concentration might have the negative impact on the fund manager’timing ability, but its significance is not stable, the proportion of securities company’s ownership shares has significant negative impact on the fund manager’s timing ability, but it has a significant positive impact on the fund manager’s selectivity ability. The proportion of foreign shareholders’shares has no significant impact on the fund manager’s selectivity and timing abilities. After a lot of detailed empirical studies, we also discussed the impact of the fund company’s ownership concentration on the rate of changes in fund managers, explained why the proportion of securities company’s ownership shares has the impact on the fund manager’s selectivity and timing ability, explored why the proportion of foreign shareholders’shares has a negative impact on fund performance.Ownership structure of the fund management company has a significant effect on the fund performance. Along with the trend of diversification of the fund shareholder’s nature, there have important theoretical and practical significances of researching the best ownership structure of the fund management company.