Research On The Influence Of Shareholding Concentration On Fund Performance

With the booming development of China’s fund market in recent years,the scale of fund asset management has increased significantly.Open-end equity funds have become the main trend for the future development of China’s fund industry and are increasingly sought after by investors due to their characteristics such as wind-dispersion risk and lower fees.Compared with direct investment in stocks,by investing in equity funds,risks can be spread among different kinds of stocks,thus reducing investment risks.In the face of the continuous differentiation of the fund market,public funds have started from increasing the concentration of stock holdings and concentrating on certain popular sectors to cope with the increasingly differentiated and structured market.Since equity funds are medium to high risk products,it is necessary to study the factors affecting fund performance in order to reduce the possibility of losses for fund investors.In this thesis,we select 2,688 open-end equity funds in China from 2006 to 2022 in terms of both shareholding concentration and industry concentration,use absolute return and risk-adjusted return as fund performance evaluation indicators,and conduct multiple linear regression analysis by establishing a panel data model with fund net asset value,fund expenses,shareholding ratio,turnover rate and fund The relationship between them and fund performance is investigated by establishing a panel data model for multiple linear regression analysis and adding control variables such as fund NAV,fund expenses,shareholding ratio,turnover rate and fund risk.To test the robustness of the study results,the sample interval is divided into cycles to observe whether there are differences in the performance of shareholding concentration and industry concentration and fund performance under different market conditions.The following conclusions are obtained: first,shareholding concentration shows a significant positive correlation with fund performance in both bear and shock market quotes,and fails the significance test in bullish quotes,which is partially consistent with the findings obtained in the full sample interval,when it can be assumed that increasing shareholding concentration will have a positive impact on fund performance;second,sector concentration does not show a significant correlation with fund performance in both bullish and bearish quotes,and in Second,sector concentration is not significantly correlated with fund performance during bullish and bearish markets,and shows a significant negative correlation with some risk-adjusted performance indicators during oscillating markets,which is partially consistent with the results of the full-sample interval test;third,shareholding concentration and sector concentration differ from fund performance under different market conditions.Next,robustness tests are conducted by both replacing the fund performance evaluation indicators and screening the sample time to ensure the reliability of the regression results.Finally,based on the empirical results,corresponding suggestions are made to China’s fund regulators,fund management companies and fund investors,and the shortcomings of this thesis’ s research are pointed out.This thesis studies the relationship between fund shareholding concentration and fund performance at both theoretical and practical levels,and expects to provide some references for the study of China’s fund market.