The Influence Of Securities Investment Fund Market Structure On Fund Performance Based On The Stock Open-end Fund

On March 23 th, 1998, five investment funds such as Kaiyuan and Jintai have been set up, which are the first investment funds in China and pave a path for the fund development normatively. In the past 16 years, the scale of securities investment fund in China expanded rapidly, accelerated the development of Chinese fund industry from the initial phase to the rapid development stage of a historic leap, more and more people use their savings to invest. Nevertheless, there is still a large gap between our country and the western developed countries. The development and experience of mature theory in western countries is not entirely suitable for the problems and difficulties which come out during the process of development in China. Therefore, if we want to narrow the distance between China and Western countries so as to solve the problems and difficulties that come out during the development of securities investment fund industry, the in-depth research is inevitable. Today, most part of the fund industry has been occupied by the open-end funds, and the equity open-end fund is the mainstream of open-ended funds. Therefore, the study of equity open-end fund is meaningful to the rapid development which is specification and healthy of the fund industry.Based on the theory of modern industrial organization, we analyze the situation of the market structure of Chinese securities investment fund industry, and then make empirical studies on how market structure influences the fund performance by focusing on the market concentration and market share.Based on the annual unit of time, this paper selects 10 years from 2004 to 2013 as the sample interval and 35 stocks open-end fund which are relatively representative as sample, and the total sample is 350. First of all, adopted two concentration such as absolute concentration and relative concentration to measure the market concentration, which are measured by the total shares of found and the net assets of found respectively. According to the calculating result, the market concentration of securities investment fund industry has continued to decline during the 10 years.Subsequently, this paper builds multiple linear regression models according to the classification of absolute concentration and relative concentration respectively, and then do regression analysis which based on the fixed effect model, the random effects and the mixed random effects regression model regression analysis, and use the F-test, the Hausman-test and the LM-test to test the applicability of the three models to examine the impact on market structure and performance as well as to verify the applicability of traditional collusion hypothesis and efficient structure hypothesis of our country. It is concluded that no matter in what kind of concentration to measure market concentration, market concentration and fund performance is significantly positively related; but the market structure does not have relationship with the fund performance just as the effective structure hypothesis puts, the relationship between them is insignificant; the GDP growth rate and growth rate of the Shanghai composite index has significant positive effect on fund performance.Finally, we can make a conclusion that through comprehensive research that Chinese securities investment fund market in line with the traditional collusion hypothesis, when the market concentration increase, the performance of the fund will also increase; the effective structure hypothesis does not apply to our market securities investment fund industry, the change of market share can’t drive the corresponding change of fund performance; the better domestic economic development, the more conducive to the development of the securities investment fund industry; The development of securities investment funds is dependent on the securities market, securities market development the better the more beneficial to the performance of securities. For these studies above, this paper puts forward the relevant policy recommendations: loosen the control of securities investment fund, build competitive industry market structure; improve the level of fund-company’s self-management; reform the charge of fund management fees; reform and develop the securities market in order to make a good environment for securities investment.