Abstract: This paper explores the internal link between the information premium and the alumni relationship. The study finds that the alumni relationship between listed companies’ executives and fund managers can bring information premium, as evidenced by the extra return that fund managers obtain by investing in their alumni’s business. Further research shows that information premium only exists in stock investment where the alumni relationship is with core executives of listed companies, and the information premium is less significant in the rapidly marketizing areas with less government intervention and a sound regulatory environment. At the same time, the improvement of corporate governance within listed companies does not have a significant impact on the information premium of alumni relationship. This study helps to understand the mechanism and influencing factors of the alumni relationship premium in a more comprehensive way, and provides a reference for the formulation of China’s securities regulatory policies. It is also shown that the reform of the external governance environment of enterprises over recent years in China has not only helped enterprises to grow healthily, but also contributed to the healthy and stable development of China’s capital market.

Key words: social relationship, information premium, information level, governance environment