Contractual mutual fund governance: the case of China

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• 作者：Jiong Gong ; Ping Jiang ; Shu Tian
• 关键词：Mutual fund ; Contractual type ; Fund governance ; Ownership structure ; Fund performance
• 刊名：Review of Quantitative Finance and Accounting
• 出版年：2016
• 出版时间：April 2016
• 年：2016
• 卷：46
• 期：3
• 页码：543-567
• 全文大小：500 KB
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• 作者单位：Jiong Gong (1)
  Ping Jiang (1)
  Shu Tian (2)
  
  1. School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China
  2. School of Management, Fudan University, Shanghai, 200433, China
  
• 刊物类别：Business and Economics
• 刊物主题：Economics
  Finance and Banking
  Accounting and Auditing
  Econometrics
  Operation Research and Decision Theory
  
• 出版者：Springer Netherlands
• ISSN：1573-7179

文摘

Unlike the corporate funds in the US, mutual funds in many countries such as China and Germany operate under a different governance arrangement and are thus called “contractual funds.” The governance structure of contractual funds allows shareholders of fund management companies, rather than the fund investors, to be responsible for asset management decisions. Therefore, a fund’s governance attributes may be especially important in driving its performance. Using a comprehensive governance data covering Chinese mutual funds, this paper finds that the governance and organizational structures of Chinese fund management companies significantly influence the performance of their affiliated funds. In particular, while a larger stake from the top1 shareholder significantly improves the performance of affiliated funds, the presence of multiple largest shareholders reduces their performance. Moreover, fund management companies that offer fewer fund products and charge higher management fees tend to perform better. Finally, more institutional holding in a fund appears to function as an external supervisory surrogate for internal board governance to help improve fund performance.