An Analysis Of The Effect Of Family Co - Ownership On Fund 's Performance And Risk

With the development of the fund industry in China, the amount and scale of the fund company has been expanding rapidly and the impact of their investment behavior to the securities market is also growing. Therefore, the study on the investment behavior of the single fund and the fund family becomes more and more important. We have found that there exists a high level of the stock co-holding of the fund family in our securities market and research in this regard is weak in recent years. Thus, this paper studies the impact of the stock co-holding behavior of the internal fund family to the performance and risk of the whole fund company.Firstly, this paper analyzes the causes of the fund family co-holding behavior, and selects the indices built by Elton (2007) to measure the level of the stock co-holding of the internal fund family. Then we use the panel data model to analyze the fund market data from the fourth quarter of2007to the fourth quarter of2012.We grouped the sample fund family according to the "fund family scale" and "fund company age" and conduct empirical test on them. We try to find difference between the big scale and small scale fund family of the young and the old fund family in this regard. Finally, we put forward some suggestions to the governance structure and supervision of fund management companies.To sum up, we mainly get the following conclusions:1) the impact of the stock co-holding behavior of the internal fund family to the performance of the whole fund company presents "Inverted U type", and when the co-holding level reaches7.01, the performance of the fund family gets the best;2) No matter big scale or small scale fund family and young or old fund family, the stock co-holding behavior is helpful for the performance of the fund family, and the smaller scale or the younger the fund family is, the higher the degree of correlation is.3) the impact of the stock co-holding behavior of the internal fund family to the risk of the whole fund company presents "Inverted U type", and when the co-holding level reaches5.6, the risk of the fund family gets the biggest;4) There was a positive correlation between the risk of fund company and the middle scale, the small scale fund family, and the smaller scale of the fund family is, the higher the degree of correlation is. We also found that this relationship in the big scale fund family or the old fund family is not significant.