An Empirical Study On The Relationship Between Characteristics Of Board Of Directors And Fund Performance In Fund Management Company

Securities investment funds have made great progress after the development about 10 years in china.It plays an important role in promoting the stable development of China's securities market. However, board governance and the independent director system in our fund management company still have some defects because the development of the securities investment fund industry in our country just are staying shorter periods of time compared to many other countries which has a highly developed securities investment funds. Especially all the funds in China are contractual-type fund. Fund companies are the agent of the securities investment funds. The board governance problem existed in fund companies and if the the independent director system can plays an active part in protecting the interests of investors has aroused wide attention and fervent discussion.This paper explores the relationship between the board governance structure characteristics of contraual-type fund and the performance of the funds based on the principal-agent theory and information asymmetry theory, try to use the analytical framework of corporate board governance structure into the analysis and research of fund performance and to explore effective board governance structure characteristics in order to protect the interests of investors.Firstly, This paper offers a review of the study on the ralationship between the the board governance structure characteristics and company performance or fund performance of the foreign and domestic research,such as the board scale,independence of board of directors. Secondly,I introduces some conceptions about fund management company , Securities investment funds , the board governance and etc. Through reviewing principal-agent theory and information asymmetry theory, analyze how board of directors should behave in protecting the interests of investors when principal-agent problem and information-non-assymetrical questions existed in China's securities market.Thirdly, I analyze the current situation in fund management company and point out deficiencies existed in the current situation of board governance in fund management company.After that, Considering the reality of fund management company in China,this paper puts forword a hypothesis and sets up study mode to analyze the the ralationship between the board governance structure characteristics of contraual-type fund and the performance of the funds,the findings shows that the higher the position of the general manager of the fund company in the board is,the lower the performance of the fund is.It finds that there is a significant positive relationship between respectively the proportion of independent directors the proportion of independent directors who owns at least 5 related work experience in the filed of banking ,law or finance;age of independent directors and fund performance. It shows there is a significant negative correlation between board size, the number of companies which independent director is employed and fund performance. It also finds there is a significant relationship between the woking experience of independent director and the accounting performance measures in a reversed "U" type shaped curve patten.At last,correspondingly to those shortages existing and the empirical results in Chinaese investment fund governance,the article provides some proposals to improve our board governance in Chinese investment fund governance to increase the fund performance in order to protect the interests of investors,especially minority investors' legal rights in China.