Chinese Fund Management Company's Internal Governance And Its Performance Study

Securities investment funds have been one of the important investors in China's capital market. After about 20 years in China, it plays an important role in promoting the stable development of China's financial markets. Fund Management Company is the core of organizational system of fund. Its development not only affects the interests of fund investors, but also determines a country's level of the fund. Therefore, study on the internal governance of Fund Management Company in our country has great theoretical and practical significance.The paper is divided into five chapters:Chapter one includes research background, domestic and international literature review and framework of the thesis.Chapter two mainly introduces the agency relationship of Fund Management Company. First, the concept of Fund Management Company and the status of the IMF system are mainly expounded; Second, the company-based funds compared to the contractual funds are more conducive to safeguarding the interests of fund holders; Finally, I analyze the agency relationship of Fund Management Company, point out special nature of agency relationship and propose the development of Fund Management Company should be based on the interests of fund holders.Chapter three mainly introduces the objective and structure of Fund Management Company. First, the Fund Management Company's objective which is to safeguard the interests of fund holders and structure of internal governance are depicted; Second, I express Fund Management Company's internal governance structure and point out that it is different from the internal governance structure of Listed Company; Finally, the problems of Fund Management Company are proposed and the cause of these problems is due to deficiencies of the internal governance structure.Chapter four mainly introduces empirical analysis of Fund Management Company's internal governance and corporate performance. It includes: reducing the proportion of the first shareholders, strengthening the responsibilities of the shareholders, controlling the number of the Board, consummating independent-director system, improving the nomination mechanism of managers and establishing a reasonable salary incentives.Chapter five points out the shortcomings of this paper, which include: the shortage of the board of supervisors and inspectors, limited samples and shortage of the external governance structure.