Research On Incentive And Constraint Mechanism Of Fund Manager Under Overconfidence Condition

2002 years , Daniel Kahneman ,the Economists of behavior, won Nobel Prize of economics, a series of theory achievement entering mainstream economics orbit . The behavior economics has got acception of economy theory boundary colleagues. The research in the field of behavior finance has got a series progress in recent years abroad. But, in the homeland, the research in this respect is still the form keeping a foothold in introduction that the document sums up mainly , doing seldom systematically to behavior finance theory studies.The first, this article introduced the theory related the agent, simultaneously has combed the behavior finance overconfident theory.It provided a better theory platform and the upholstery for this article research from the theory mentality and the method.Second,we have studied influence of fund manager's overconfidence on encouragement.We builded mathematic model and studied influence of fund manager's overconfidence on encouragement .We find that overconfidence lead to the fact that the fund manager works harder,and make fund manager have bigger actual expectancy achievement , and along with fund manager's overconfident level enhancement, the fund manager accepts the more low-priced contract.Third, we studied the influence of fund manager's overconfidence on his encouragement and the supervision. The result shows that the fund manager works harder and fund organization surveillance dynamics can be weaken while the over confident level of fund manager increases.Finally we discussed overconfident fund manager's rate of decay. We know that the overconfident fund manager is able to know own actual ability by way of practice. If overconfidence weaken very quickly,then overconfidence is not important to encouragement of fund manager. On the contrary, if the level of the fund manager's overconfidence weaken very slowly then the overconfidence is long range existence. Overconfidence of fund manager is so being therefore likely to play an important role in the problem resolving encouragement of the fund manager. We find that by studying: manager's overconfidence will exist in the long run and come fluctuately down along time away. The weaken speed of the fund manager's overconfidence is connected with the level of overconfidence of the fund manager.