China Close - Ended Fund Governance Structure And An Empirical Study On The Relationship Between The Discount Rate

Securities investment funds have gradually become the most important indirect financial instruments and institutional investors to the stock market, played an important role in the promotion of industrial development and economic growth, as well as the stability of the stock market and social security system.For closed-end funds have the advantage of fixed shares and low fluid risk, they are suitable for long-term investments,which is critical for the development and stability of China's capital market.Improving rational governance structure is a key point to the fund industry's survival and long-term development. As a whole,China's fund industry is still at an early stage of development.The market system and external governance mechanisms are both far from perfect,and failed in effectively protecting the interests of the holders of share.In this case,behavior that will infract the interests of share holders can not be prevented.On the account of lack of redemption system,the existent defects of fund governance structure will apparently force closed-end fund investors to trade closed-end fund with discount price to seek interest compensation.This thesis will place its basis on the fund governance structure theory, including relevant theoretical and empirical research both at home and abroad to explain the closed-end funds discount trading phenomenon in a creative way, that is, the "fund governance structure defects".On the basis of principal-agent model and the convergence of interest theory and in light of China's fund industry actuality, as well as the quantification of the fund governance structure, the thesis will establish series of hypotheses and econometric model to analyse the intrinsic pertinence between closed-end funds governance structures and the discount ration through demonstration, estimating the relative importance of the index.On this basis,the research finds out that there is significant negative correlation between the level of the fund company governance structure and its closed-end funds' weighted average discount ratio.On the basis of demonstration study, the conclusion part summarizes the whole research, according to which bring forward some policy recommendations.