China’s Securities Investment Fund Rat Behavior And Governance

In1998, China launched two closed-end funds for the first time officially, It opened the prelude to the development of securities investment funds. After10years of rapid growth, In the end of2012, China Securities Investment Fund reached1241, assets under management total3.622552trillion yuan, which mutual fund products1173, public fund asset size of about2.8661trillion yuan, the fund account number40186900. Securities Investment Fund has become an integral part of China’s capital market, the healthy development of the fund industry has a profound significance for the stable and sustainable development of China’s capital market. For various reasons, the fund industry frequently found Rat behavior in recent years which is not only damages the interests of the fund assets and fund share holders, but also shaken fund investors confidence in investing in the Fund. This will bound to trigger a crisis of confidence of fund investors in the fund industry and affect the sustainable development of the entire fund market, thereby affecting the stability of China’s capital market. Therefore, how to effective governance Rat in order to protect the interests of fund holders, and establish the confidence of the investors in the Fund invests in the development of the fund industry. On the basis of previous research, this article combined with the theory of asymmetric information, principal-agent theory, theory of reputation, analyzes the Fund’s special dual agency relationship resulting in the Fund Rat under Asymmetric Information. In this paper, by constructing Game Model of the game between the relevant stakeholders of the Rat behavior, find the Nash equilibrium, and analysis Rat behavior reasons with reality mainly include:Fund managers illegal cost is too low; dereliction of duty on the part of the fund management company internal controls; fund managers investment channels blocked; fund investors maintain the right to difficulties. On this basis, the event study method empirical analysis of the market impact of the Rat behavior Rat event announced some negative impact on the fund company income Rat, but very limited. Therefore, this study concluded that the governance Rat fund management companies need to be investigated for dereliction of duty.