The Empirical Research On Influence Of Fund Manager Turnover On Fund Performance

Compared with foreign mature capital market, Chinese fund companies seems more likely to change their top managers. Study on influence of fund manager turnover on fund performance, it not only has important theoretical significance, but also for the fund industry's healthy development and to protect the interests of fund investors all have practical significance.This paper investigates the influence of fund manager turnover on fund performance using a sample of open-end equity funds. First of all, build the two dynamic equilibrium game mode between the fund managers and the fund companies, from the theoretical analysis the relationship between the fund performance and the fund managers replace; Then, based on performance theory, tournament theory, reputation mechanisms, herd behavior and incomplete contract theory, proposed the hypothesis; Finally, using the objective adjusted return measures divided the study sample into positive and negative samples, empirical research on the influence of fund manager turnover on fund performance.We found the following conclusions:First, the fund managers change, the fund's overall performance can not maintain the original level of performance, can not achieve the goal to improve performance, a number of the fund's performance indicators have worsened. Second, for the purposes of portfolio risk, the former fund manager's portfolio risk is greater than the latter. Third, in general, fund managers have some stock picking ability, but not with the change of fund manager change, fund managers have not timing ability. Fourth, fund managers before and after the replacement, the fund portfolio-style funds remain unchanged, the positive samples in the value preferred stock, preference for negative samples in growth stocks. Fifth, the influence of fund manager turnover on fund performance have investor's external effects, the fund's net capital inflow will be reduced.The frequent replacement of fund managers is not a good talent to play competitive mechanism to improve the performance of the fund, portfolio risk reduction, improvement of governance structure does not achieve the desired results. It should develop fund managers practice specification to restrict the fund managers frequent replaced. At the same time, fund management companies and fund investors should change their concepts that a correct view of fund managers in the fund's role, a reasonable assessment of the fund managers replacement of the impact to the fund.