The Impact Of Investment Behavior Bias On Fund Performance

This Paper uses the data of fund managers in China's securities market from 2006 to 2017.Firstly,the fund managers are regarded as a whole to study whether there are any investment behavior biases among fund managers with professional background.Then,the fund managers are taken as individual analysis,and the disposal effect,Performance Pursuit effect and overconfidence are calculated through the investment data of fund managers on stocks.Using fixed-effect model and random-effect model to analyze the factors that influence these three investment behaviors biases.It is found that the individual characteristics of fund managers(gender,bachelor's degree,master's degree)have no significant impact on investment behavior biases.The Personal environment of fund managers(investment experience,working environment,Personal experience)has significant impact on some investment behavior biases.The Macro-environmental has significant impact on the investment behavior biases of fund managers.The industrial Policy takes the automobile industry as an example.Tax incentives and government subsidies are taken as considerations.It is observed that fund managers have a significant industrial investment tendency for tax incentives.Secondly,it analyzes how the investment behavior biases of fund managers affect the investment Performance of the fund,and whether they are rational.In order to eliminate other influencing factors,adds control variables to the model.Adopts lagging one-stage investment Performance as the control variable to remove the time correlation,and uses adjacent investment Performance as the control variable to remove the adjacent correlation.At the same time,this Paper adds threshold effect to analyze the impact of different investment behavior biases on excess return and downside risk under different macro environments.It is concluded that the investment behavior biases are not entirely irrational.Under different macro-environments,investment behavior biases have different impacts on investment Performance,based on this advice to fund managers and the government.