On The Affecting Factors Of Equity Investment Performance Of Fund Management Companies In China

In recent years, assets of securities investment funds growing rapidly. While the stock is the main variety of equity funds'investments, the performance of equity funds plays a key role on the fund management company's performance. Therefore, the research to equity investment performances of fund management companies has a great significance.By establishing an econometric model with a non-balanced panel data of all fund management companies in 1999-2007,we conducted empirical analysis and found that, in all factors, the proportion of foreign ownership of fund management companies positively related to the equity investment performance. Fund management companies'equity investment performances significantly negatively correlated to the city's financial center status, and positively correlated to the political position.Fund management companies'equity investment performances positively related to the total size of funds, but negatively correlated with the number of funds who managed. In addition, the equity investment performance has a significant positive correlation with the population density of the city where the company is located, but not relevant with the level of the city's per capita GDP.The proportion of shares held by securities companies, board size, the proportion of independent directors, the proportion of independent directors with a financial experience and the ratio of open-end fund assets all not significantly related to the fund management companies'equity investment performances. Besides these, the inverted U-relationship between board size and the equity investment performance is not significant.In addition, the average number of years fund managers serves the fund management company positively related to the equity investment performance, but no significant effect from the proportion of fund managers that replaced. At the same time, that can be seen from the regression results that although the executives'working experiences do not exist in a significant correlation with the company's equity investment performance, experiences of the financial industry practitioner and foreign corporate practitioner have a certain degree of positive correlation with the equity investment performance.