Research Of Affiliated Mutual Funds And Affiliated Analysts’ Behavior

With the development of the global financial mixed operation， and the gradualliberalization of the financial sector, Chinese Financial Conglomerate runs fast in the internalcompetition and driving. Many large financial groups established in China, such as PingAnGroup, China Merchants Group, CITIC Group and others. Mixed Financial conflicts ofinterest has attracted serious concern of investors and Institutional Investors. Therefore, at thebackground of mixed financial, this thesis research the analysts’ act who are belong to fundmanagement companies and securities companies’ asset management. They are all controlledby the securities. The paper reveals the existence of a conflict of interest will impact thequality of Analyst reports. Furthermore, the paper will research whether the reputationmechanism can mitigate this effect.The paper is divided into theoretical part and empirical part. At first, it will research therelationships of theoretically comprehensive specification securities companies, fundmanagement companies and Affiliated analysts. And then, by the use of empirical researchmethods, it will analysis the relationships of the Sub-Fund’s investment performance andanalysts’ attention, the earnings forecast optimism. At last, the paper will research theanalysts’ Optimistic earnings forecasts on the impact of reputation mechanism.After researching, we find,Affiliated analysts pay more attention on the Affiliated MutualFunds’ stocks than Non-affiliated analysts.Affiliated analysts give a more optimistic earningsforecasts at Affiliated Mutual Funds’ stocks than Non-affiliated analysts.The star analysts’earnings forecast at the deviation of Affiliated Mutual Funds’ stocks is not statisticallysignificant. It is necessary to appraise the star analysts to us.Finally, we give some recommendations on how to improve the financial supervision.