A Research On The Relationship Between The Ownership Structure And Performance Of Fund Management Company In China

Tripartite are involved in investment funds: managers, trustees and holders. Fund holders is the ultimate owner of the Fund's assets and have all income brought by fund assets. The trustees of fund is the nominal holder and custodian. Fund managers is the professional bodies who are responsible for the establishment and management of the Fund.The response- bility of fund managers are assumed by the fund management companies. Investment Fund is a typical example of the fi- ducial agents. The essence of affiance is that management is separated with revenue. The development of fund management companies often determines the level of development of a country's fund industry.Shareholding structure of the fund managers shareholding is an important aspect in the Fund's internal governance. When the extenal factor such as law and the market of fund mangement can not replace the connection between Trustor and Agent, the structure of share holding became a wildspreadly concerned mechanism. In just 10 years, China's fund management company's shareholding structure has been in a process of development and change. Changes in the ownership of the fund management company has the following features: Firstly the ownership of the fund management frequently changed, shareholders of the fund management companies have changed in Almost all the fund management company Secondly the types of Shareholders are increasingly diversified. With the adjustment of the laws and regulations and the development of the capital market, the types of shareholders were extended from the securities companies, trust companies to the large enterprise groups, commercial banks, foreign institutions, and so on. more and more agencies attented the competion for the ownership of fund company. Thirdly the interlation among Shareholders is complex. That can be manifested mainly by the phenomenon of the co-existence or equity controlling among shareholders, From the status quo of the shareholding structure, its composition can be roughly divided into holding of absolute and relative holding of equity scattered three.Performance of the fund management companies has a strong correlation with its shareholding structure. To the fund management company that an absolute control in sharesholding, to a certain extent, the focus on equity benefit the company's operating incentive to reduce agency costs and effectiveness of supervision, However this make major shareholders lack bound and make fund managers independence decline, Thereby affecting the Fund's performance.the managers have more independence and more normative acts in a company where the equity are dispersed,but the business incentive and the agent's supervision therefor can be weaked. Relative holding of fund management companies-holding between absolute and equity among dispersed ownership structure, with relative control. This shareholding structure set up to a certain extent, limit the major shareholders violations, but in the incentive mechanism, which is controlled by the fund management companies to worse. In Empirical Analysis, in accordance with China's capital market and fund management companies that the reality of the situation, joined the foreign shareholders, fund size and other factors, to look at different types of fund management company's fund performance. The results show that: in the current domestic fund management industry, stock performance and the degree of concentration exists between certain inverse relationship, the more concentrated ownership structure, the fund management company's poorer performance of the Fund. Relative holding funds in the operation of the Fund's ability to be sure that the fund's performance is quite conspicuous. The introduction of foreign capital to play a positive role in fund performance.To improve equity structure and improve the performance of the fund management company,we can start with the following aspects:firstly we should continue to study settings of the wnership Structure;secondly we should strengthen the supervision and management of the fund company;thirdly we should Improve the fund management company's management structure.