On November 15th, The Hujiang Economics and Management Forum Series (75th Session) was Successfully Held in the Lecture Hall on the 4th Floor of Building A at the Business School. Associate Professor Li Bing from the Department of Finance presented their recent working paper titled as Mutual Fund Shareholdings and DEA Performance: A Network Perspective. The professors and students from relevant disciplines attended the forum.
During the presentation, Prof. Li firstly introduced the fundamental concepts and models related the field of economic networks and then explained the research work in the working paper in details. The paper focuses on the Chinese mutual fund market and study the relationship between mutual funds’ shareholding network and their efficiency. The shareholding network is constructed based on the fund’s shareholding data and the fund’s efficiency is measured by the DEA model. The research results indicate that the higher the centrality in the shareholding network, the higher the efficiency of the fund. Furthermore, the information mechanisms by which network centrality enhances fund efficiency are empirically investigated, i.e., a higher centrality in the fund network can result in lower market synchronicity for the investee company’s stock price, indicating that the fund can acquire and provide more firm-specific information to the market; the trading behavior of higher centrality funds can be followed by the lower centrality funds, indicating the information transmission channel between them.
After the presentation, Prof. Li and the attendees made discussions about the fund shareholding network and measuring models of the DEA efficiency.
Scene from the Presentation
