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Can high-performance funds be built and managed by improving their network locations? –- evidence from entrepreneurship in Chinese fund managers

Author

Listed:
  • Xiaoying Zhai

    (Shanxi University)

  • Huiping Ma

    (Shanxi University)

  • Yongmin Zhang

    (Ningbo University)

Abstract

Establishing a high-performance fund requires strong entrepreneurship skills in many aspects including fundraising ability, networking skills, and fund management techniques. Using a complex network perspective, this paper constructs and analyzes Chinese fund networks based on coshareholding relationships. Social network analysis methods are employed to construct index measures of fund network centrality, and the impacts of the index measures on fund performance and capital flow are systematically studied. Our results reveal that network centrality has a significant and positive impact on fund performance. That is, the more central a fund’s network location is, the more it may benefit from information, resource acquisition, decision-making and interinstitutional communication advantages, resulting in better fund performance. The paper further reveals that higher network centrality can also enhance the spillover effect of capital flows. Our research can provide a theoretical basis and practical guide for more effective fund management. Fund managers can build and manage high-performance funds by increasing their network centrality measures.

Suggested Citation

  • Xiaoying Zhai & Huiping Ma & Yongmin Zhang, 2022. "Can high-performance funds be built and managed by improving their network locations? –- evidence from entrepreneurship in Chinese fund managers," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 383-407, March.
    • Handle: RePEc:spr:intemj:v:18:y:2022:i:1:d:10.1007_s11365-021-00779-x
    DOI: 10.1007/s11365-021-00779-x
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