Research On The Influence Of Fund Manager Characteristics On Cross-fund Subsidization Behavior Within Fund Families

After more than 20 years of development,the securities investment fund industry has improved significantly in the number of funds,scale of assets under management and product diversity.At the same time,the competition between fund companies is also increasingly intensified.What kind of strategy to enhance the competitiveness of the company has become an important problem faced by many fund companies.Because of the star effect and spillover effect of star fund,cultivating star fund has become a channel for many fund companies to improve their competitiveness,and the cross-fund subsidization within the family is one of the means of cultivating star fund.The cross-fund subsidization behavior within the fund family refers to the behavior that the fund company transfers the benefits to another part of the fund at the expense of some funds,so as to enhance the performance of the fund and create the star fund.Although this internal strategy can bring significant capital inflow for fund companies themselves,it also leads to the generation of moral hazard,damages the interests of some investors and is not conducive to the long-term development of the capital market.Exploring the influencing factors of cross-fund subsidization behavior within fund family will help further reveal the impact of fund family behavior on the interests of investors and the development of capital market.Existing literatures tend to pay more attention to the influence of fund characteristics(value,scale,etc.)or fund family characteristics(management ability,co-ownership degree,etc.)on the cross-fund subsidization behavior within fund family,but there is little research on fund family subsidy behavior from the perspective of fund manager characteristics.Based on this,this paper applies the principal-agent theory,the star effect and spillover effect theory of star funds,and the high-level echelon theory to further analyze the relationship between the characteristics of fund managers and the cross-fund subsidization behavior within fund families on the basis of analyzing the existence and subsidy path of the cross-fund subsidization within fund families: On the one hand,there is information asymmetry between the fund family and the investor,and the interests pursued by the fund family are not completely the same.The fund family has the motivation to take the cross-fund subsidization behavior to build the star fund,and make use of the star effect and spillover effect of the star fund to win greater net capital inflow for the family.On the other hand,the characteristics of the fund manager will determine the investment behavior of the fund manager and affect the performance of the fund.Meanwhile,the fund family will choose the training object according to the characteristics of the fund manager and support the fund manager through cross-fund subsidization behavior.Based on the above theoretical logic,this paper puts forward theoretical hypotheses,and then takes China’s general equity funds and partial equity hybrid funds from 2017 to 2021 as research samples,and constructs an econometric model to empirically test the relevant theoretical hypotheses.The theoretical and empirical results of this paper show that: first,there is a significant cross-fund subsidization behavior within the fund family.Second,the path of cross-fund subsidization behavior within fund families includes performance path,size path and age path,and the specific direction is that low-performance funds,small-scale funds and high-age funds subsidize high-performance funds,large-scale funds and low-age funds.Third,some fund managers characteristics will affect the internal cross-subsidies behaviors,in particular,the shorter the age,the lower degree of fund managers are more likely to become is the subsidies of cross subsidy within the object,the fund manager and fund manager team number and gender race there is no significant relationship between the internal cross subsidy.The innovation and contribution of this study are as follows: First,while verifying the existence of cross-fund subsidization within the fund family,this paper deeply studies the path of cross-fund subsidization within the family and discusses the specific subsidy direction.At present,only some domestic scholars have studied the path of cross-fund subsidization behavior within fund families,and the results are different,and the conclusions about the specific subsidy direction are also controversial.This study has certain reference significance for clear path and specific direction of fund cross-fund subsidization behavior inside fund family and enriches relevant literature in our country.Second,this paper combines the cross-fund subsidization behavior within the fund family with the characteristics of the fund manager,and analyzes the impact of the characteristics of the fund manager on the cross-fund subsidization behavior within the family.Current research mainly focus on the characteristics of the fund or fund lineage characteristics influence on internal cross-subsidies lineage behavior,and less focus on the characteristics of fund managers and the relationship between the internal cross-subsidies lineage,the study of the characteristics of fund managers focus only on fund managers also features impact on fund performance,the research is relatively independent.In this paper,working years,gender,education background and team size of fund managers are introduced into the study of cross-fund subsidization behavior within family as moderating variables,so that the factors affecting cross-fund subsidization behavior are no longer limited to fund level or fund family level,and the research on cross-fund subsidization behavior and fund manager characteristics is supplemented.