Research On Ownership Structure And Fund Performance Of Securities Investment Fund Management Company

In recent years, China's fund management companies have been facing increasingly fierce competition. In response to the competition, the majority of fund management companies have improved its governance structure, the most prominent of which is the frequently adjust of ownership structure. Whether there is any kind of relationship, and what kind of relationship between ownership structure and the fund performance, and what kind of governance structure is the real Chinese fund management industry to develop and so on, with these questions, this paper studied the relationship between Chinese securities investment fund management company's ownership structure and its fund performance. The results of the study will have important theoretical and practical significance to improve the operation level of fund management companies, to the supervision of the fund industry, and to the protection of the interests of investors and so on.This paper used the research methods of comparative analysis and graphs analysis, and discussed the above problems from both theoretical and empirical aspects. In the part of the theoretical analysis, based on the literature about ownership structure and corporate performance, this paper made an analysis of the characteristics of the different ownership structure, and the mechanism of different ownership structure impacting on fund performance. The focus of our analysis was on the composition, the changing characteristics and causes of Chinese fund management companies' ownership structure. The findings indicated that the ownership structure of China's fund management companies showed the following characteristics: frequent changes in ownership, complex relationships between shareholders, diversification and concentration of shareholders' types. The ownership structure of China's fund management companies are roughly divided into three types, that is one dominant shareholder, two dominant shareholders, and average division in ownership, among of which, the structure of one dominant shareholder takes a dominant position. Each type of ownership structure has their advantages and disadvantages to fund performance.In the part of empirical analysis, the paper constructed a multiple regression model to analyze whether the ownership structure of fund management company will influence it's fund performance. In the model, we used the adjusted earnings of equity funds to express the fund performance of fund management company, and used number of shares held by leading shareholders, the controlling power of leading shareholders, equity checks and balances, the percentage of foreign ownership, the proportion of financial shares, number of shareholders, and fund size to express ownership structure of fund companies. Then, we chose the variable of fund performance as the explained variable, the variables of ownership structure of fund management company as explanatory variable, to build multiple regression model. Through the empirical tests, the paper made the following conclusions: the fund management company's ownership structure will influence it's fund performance; the structure of one dominant shareholder has a positive impact on fund performance; and the ownership structure of the first leading shareholder having controlling power, cooperating with shareholders of financial background and foreign capital is beneficial to improve the fund management company's fund performance.