| At present, the development of the domestic fund industry, as a whole, it is rather non-standard. Fund companies in order to compete for the market potential investors, major fund companies often use aggressive advertising media. Fund companies use better performance fund as a sign. Fund investors face of numerous funds and it is difficult to choose a better fund. This paper is based on this reality and study if there exists positive spillover effects of star fund, which is if star fund can bring significant net inflow for itself or the whole family of funds, if the effect will affect the other fund company which do not have star fund. If the fund company will imitate the star fund strategy. On the other hand, whether star fund published ten Awkwardness quarterly affect secondary market investors. If there is a positive impact, investors can participate in the investment and make a profit, but also shows the impact of the funds on the stock market. Overall, the research on the subject has a positive meaning for fund investors, secondary market investors or regulators of the fund.In this paper, the problem is divided into three main areas, which can be summarized as the spillover effects of the star fund. After defining the spillover effects and other related concepts and related theories, the first major problem is the effect of star fund to other funds in one fund family as well as the whole family. The second problem is whether the top ten Awkwardness of star fund announced quarterly has an impact on the secondary market investors. The third problem studies the impact of star fund to other fund families. In summary, the three problems study the star fund spillover effects.The First part of this paper is introduction. Rest of the paper is organized as follows:Chapter Two is related research literature review. This chapter review of the literature about the star fund spillover effects domestic and abroad, we compares the results and give the inadequacies of their analysis. Chapter Three is the theoretical of this paper. First, this chapter explains the concept of the open-end fund, the fund family and spillover effects. Next, gives a brief introduction to the sources of income of the fund management company. The key of this chapter is to describe the concept of the spillover effects of the star fund, the reasons for the presence of spillover effects and ways and means of using spillover effects. These are the theoretical basis of later empirical research.Chapter Four is the first part of the empirical analysis of this paper. Using panel data of length21, this chapter studies the spillover effects of star fund to non-star funds in one fund family and to the whole fund family.Chapter Five is the second part of the empirical analysis of this paper. This chapter mainly studies the information, which is ten Awkwardness of star fund published quarterly, impacts the stock market. Using event study method, which from stock return volatility and turnover volatility the two angles, to study the spillover effects of star fund.Chapter Six is the last part of the empirical analysis of this paper. This chapter mainly studies the spillover effects of star fund to other fund family.Chapter Seven is the last chapter. This chapter mainly reviews and summarizes previous research and conclusions of this paper, also gives the inadequacies of this study and further research directions.According to the proposed questions, the structure and the empirical research of this paper, shows conclusions of this paper are as follows:(i) First, this paper test if there exists the spillover effects of star fund. From the point of view of the individual funds, if star fund will bring net inflow to itself as well as non-star fund of the same fund family. The first model’s results show that star fund in the previous period do not bring net inflow to current, but it bring net flow to non-star fund of the same fund family. This means that star fund produces positive spillover effects to other funds in one fund family. The second model is the analysis from the point of view of the fund family, the results show that the star fund produces significant positive spillover effects to the entire family. On the other hand, dog funds did not cause a significant outflow of itself as well as other non-dog funds of one fund family. Comparing to star fund, this is asymmetric. (ii) Next, using event study methodology to analysis if ten Awkwardness of star fund reported quarterly have impact to investors of secondary stock markets and from abnormal returns and abnormal turnover respectively. In the case of not considering the stock weights, whether it is for the star fund or dog funds, it is not significant enough both for abnormal returns and abnormal turnover. This result is not consistent with the assumption of this paper, therefore we improve this model. After correcting model, the results show that the first heavyweight and heavyweight combination of the stock, which star fund and dog fund hold commonly, have shown very significant abnormal returns and abnormal turnover. The tenth weights combination of stock and sub-heavyweight performance in two aspects are not significant enough. However the abnormal returns of heavyweight, which the dog fund holds, shows a similar situation with star fund, but do not show statistically significant indicators of abnormal turnover.(iii)Finally, this paper goes on to text if star fund impact to other fund of other fund family. Using the panel model to test whether there exists relationship between the characteristics variables and if exists the star fund of the fund family. The test results show that the past performance of the fund families is difficult to determine the probability of producing a star fund directly. The company which fund performance more volatile is more likely to produce a star fund. From the point of view of the scale, the larger the fund family is more likely produce star fund. When the fund company is the star family, it is more likely to produce star fund. On the basis of the regression results, according to three significant characteristic variables:the results of the standard deviation between the fund families、the size of the fund families and if it is star fund in the previous period. We use the three factors to construct combination to further analysis the investment capacity of different family and their investment strategy. The results show that star family did not show significantly a higher rate of returns. It is not successful to invest star family based on the existence of star fund. Further analysis shows that the star family which is low deviation performance stability and gets higher rate of returns. They belong to a real star family and have higher investment ability overall, can make the most of the family of the Fund’s performance remains at a high level. In contrast, the star family with high deviation has motive to build star fund, but performance of family is very unstable, they do not belong to the real star family and can’t bring better returns for investors.The main innovation of this paper as follows:first, this paper study the spillover effects of the star fund and gives comprehensive comparison; Secondly, we expands the spillover effects of the star fund. In particular, gives a detailed study of how the star fund impacts investors of secondary market; Third, when study the top ten Awkwardness of the star fund published quarterly affected to investors of secondary market, we use event study methodology and split the quarterly report content to study how different information influences to investors precisely.Finally, this paper gives summary of the full paper, the inadequacies of this study and pointed out the direction of further research. |
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