The Research On Fund Performance Spillover Effect And Its Influence On China's Open-end Fund Family's Star-making Behavior

Since the 1980s, global securities investment fund industry has been rapid development, and open-end fund is entering a period of rapid development, it seems to have become the mainstream of the securities investment fund products. In China, the open-end fund, though started late, but rapid development. From 2001, the first open-end funds-the beginning of the birth of Hua innovation, China's fund industry has begun to shift from an open-end fund dominated era. But also in the process of development gradually showing the characteristics of family development, a fund company as an organizer and manager, operates a number of funds. According to this paper, statistics show that currently 508 open-end equity fund of funds on the market are under the management of 73 fund company.With the development of China's family-oriented open-end fund, the Fund's transcendent performance of individual funds on the entire family will inevitably have a significant impact, which led to research on fund performance "spillover effect". The so-called spillover effect refers to the outstanding performance of the Fund can be obtained not only increase their cash flow, but also other funds for the same company and the whole family will bring more capital inflows.So, is there exist fund performance "spillover effect" on China's open-end fund market? If exist fund performance "spillover effect", then what characteristics it has, and what impact it will be on the behavior of fund family? These questions have become the focus of the researchers' attention. From the study abroad, the study of "spillover effect" is generally based on the fund family. Taking into account the history of China's fund industry is short, the domestic research on the family level is also particularly lacking. Therefore, it is urgent for researchers to explore the laws of China's fund market from the perspective of fund family.Under the background, this article studied the spillover effect using the sample of all stock open-end fund from the first quarter of 2011 to the fourth quarter of 2015. Throughout the text, this paper mainly studies on two major problems which adopts combination of theoretical and empirical analysis:one problem is testing the "spillover effect" and analyzes its characteristics; the second is studying its influence on fund family's star-making behavior. From the specific point of view, mainly including the following modules:The first part of this paper is the introduction, mainly discusses the research background and significance of the article. Different from traditional research, the research on fund performance spillover effect pay more attention to the family environment. From the family level, delve into the spillover effects of the Fund and its influence, which has great significance for the various parties involved in the fund market.The second part mainly reviews the related literature. Through the comparison, analysis summary of the research status of the spillover effects at home and abroad, not only absorbs but also reveals some shortcomings. As far as the research status of fund performance spillover effect is concerned, the research abroad is much earlier than domestic. However, the research ideas have followed the same path, which is to start from the family relationship between fund performance and financial flows. Overall, foreign studies have found that "star fund" can not only attract large capital inflows itself, but also on family and other funds. In contrast, the domestic scholars' researches have been a big difference, although a considerable part of the scholars have found evidence of spillover effects, but some scholars have denied this effect. In this regard, this paper argues that the development of China's fund market is not perfect, as well as samples of the early fund is less. In the early stage, only a small part of the sample was chosen to study, and it can't reflect the situation of the open-end fund market in our country. In the aspect of the effect of fund performance spillover, scholars both at home and abroad pay attention to the impact of spillover effects on the fund family. And from the family resource allocation, suspend purchase, cross subsidies star strategies, scholars study the behavior of family. This research direction is definitely worth reference, however, researchers cannot ignore is, the strategy itself is "make a star" service. For investors, who are more concerned about the implementation of a star's behavior, it is particularly important to identify the main star.The third part is the theoretical part of this paper, mainly from the relevant theory involved in the article. This paper focuses on the theoretical origin of fund performance "spillover effect", the definition of the star fund and the star fund family. The spillover effect is essentially the embodiment of externality. The spillover effect is essentially an externality. On its causes, this article mainly analyzes from two aspects:one is from the analysis of the brand effect and the representative heuristic angle. The other is from the theory of asymmetric information and search costs.The fourth part of the article is the empirical analysis part, mainly explores two aspects:the first is on fund performance rankings, determine star fund, and then test the spillover effect and analyze its characteristics. The second is to study its impact on fund family's star-making behavior. Throughout the empirical analysis, the worst performance of "junk fund" has also been introduced into the model.Test on the performance of the fund spillover effect, this paper begins from two different entry points, and forms a comprehensive investigation of the problem. Firstly, the panel data model is established to examine the influence of star fund on the fund management company's overall cash flow. The results show that the "star fund" has a spillover effect on the whole fund management companies, and the "garbage fund" does not have reverse spillover, which appears asymmetric. From the perspective of family history, the results of the family history and the growth rate of the net inflow of funds is not significantly related. In different, family performance standards and family size were significantly correlated with the net capital inflow. Secondly, based on the relationship between the star fund and the net capital inflow of the same family members, this paper verifies the existence of the spillover effect. Here also obtains the non-symmetrical overflow effect result, thus two points formed before and after confirmation.For part of the influence of spillover effect, the panel data logit model is established, results show that the asymmetry of the spillover effect had a profound impact on fund family's star-making behavior.No pre-star fund, funds excess returns standard deviation is high and the larger the family, the probability of the emergence of star fund next greatly improved. This shows that there is no pre-star fund, fund performance between the standard deviation is high and larger families are more likely to take the initiative to implement a star behavior. By article analyzes, fund family's star-making behavior does not stand on the basis of the interests of investors, but merely a interests in the spillover effects. Therefore, investors must be cautious, prudent investment.The fifth part is the conclusion, suggestion and research deficiencies, this paper discusses the findings and recommendations, and point out shortcomings.In summary, this paper has been innovative in the following aspects:First, We test the spillovers effect not only by studying the cash flow impact on the entire family, but also examine the cash flow relationship between the star fund and other members of the family. So the study is more comprehensive than in the past,and we can fully excavate the characteristics of the spillover effect of the fund market in our country. Second, standing at a new time node, the paper can get more valid data. Compared to many domestic researchers using small sample data to infer the whole market at the beginning, this article covered samples more thoroughly. It is beneficial to overcome the shortcomings of previous studies. Third, from different perspectives,such as the brand effect and representative inspiration, information asymmetry and search cost theory, the paper has analyzed the causes of spillover effects,and this may be a theoretical highlights of this paper. In the empirical research, through the panel data logit model, we obtained the market subject identification based on a star. This provides a reference for investors to invest and regulators to strengthen supervision, with strong pertinence and higher practical significance.