Star Fund Managers Generated Of Dynamic Mechanism Research

China’s securities investment funds started in the late1980s. Since then, China’s securities investment fund industry has experienced in the germination and early stage, the rapid development stage, the adjustment and specification phase and steady development of four stages. For now, china’s financial markets funds has become the most influential institutional investors, medium and small investors are also concerned financial products, Its investment philosophy, investment style has a profound effect on the operation of the financial markets and investors. In general, the fund company has a professional investment researchers and powerful information channel, funds will take care of funds, you can enjoy a professional investment management services; Meanwhile, with the continuous development of China’s fund industry the number of funds increased, investors collected information costs are also increasing.As we all know, fund industry-specific expertise makes us very concerned about the fund managers and investors generally believe that fund managers as "head", is the key to the fund’s investment operations, determine the performance of the fund. Some outstanding performance of fund managers, create a huge income for investors, and arouse attention by the media and trust of investors; Therefore, the annual fund quarterly, semi-annual and annual reports of such material information disclosure period, the fund industry will attract special attention of investors and the media focus on a performance without gunpowder "draft" ranking competitions to elect the star funds manager. In recent years, academic studies have exaggerated the impact of fund performance of the fund manager’s personal attributes, ignoring the role of the fund manager behind the team, and no serious analysis of the dynamic mechanism star fund manager generated. Based on this from the perspective of contest theory and fund Championship theory to analyze the impact of the performance of the fund manager performance factors as well as the star fund managers to generate competition.This paper argues that the generation of star fund manager as a "draft"; Become a star fund manager performance does not depend on the absolute performance, but its performance relative ranking of all fund managers. In this paper, at the contest theoretical analysis framework and funds Championship race theory, and use of2007-2013quarterly data open-ended equity and hybrid funds as a sample, investigateThe dynamic mechanism of star fund manager generated both from the theoretical and empirical. The study found three factors that affect fund managers to become a star fund manager:(1)Fund manager’s personal innate endowment has a significant impact on competition; With the continuous growth of the fund manager’s business experience, education continues to improve; will be understand the market more profound, win in performance rankings to become the star fund managers.(2) Fund managers pay the greater effort in the performance race, the more easily achieve higher performance rankings, and then become a star fund manager.(3)Good corporate governance is not only able to fund a good solution for the fund manager "moral hazard" problem, and improve fund managers "reputation costs", but also provide a good platform for fund managers to investment operations, improve performance rankings, become the star fund manager.This paper not only integrates factors generated by star fund manager, but also has great practical significance for the relevant fund market participants. Firstly, investors should concern about the fund’s overall strength; understand the motivation generated to star fund manager. Secondly, for fund companies should strengthen corporate governance suppression to improve the operation of the level. Finally, for market regulators, the fund regulatory agencies need to regulate the behavior of star fund manager, enhance investor education, establish docking mechanism or allow fund managers to become their own "investors" of short-ranking performance rankings of fund managers in order to reduce the pressure, cancel short-ranking performance rankings of fund managers in order to reduce the pressure.