An Empirical Study On The Impact Of Fund Manager’s Performance Ranking On Fund Manager’s Risk Adjustment Behavior

Relative performance rankings affect not only a fund manager’s pay,but also his position.A large number of studies have shown that the mid-year performance ranking of funds has an impact on the risk adjustment behavior of fund managers in the second half of the year.It is of great significance to study the risk adjustment behavior of fund managers and its impact on fund performance to improve the incentive mechanism of fund companies,investors’ investment activities and the performance of supervision by state institutions.Firstly,this paper USES contingency table analysis and regression analysis to study the risk adjustment behaviors of fund managers based on the performance of the fund in the first half of the year in a full sample,and then analyzes the risk adjustment behaviors of fund managers in different performance orders in groups.Then,the relationship between market state and fund manager’s risk adjustment behavior is further studied by using contingency table analysis and regression analysis.Finally,analyze whether the fund manager’s risk adjustment has improved performance.The paper found that the losers who performed poorly in the middle of the year-were more likely to reduce their portfolio risk in the second half of the year.Moreover,managers with second-best results were more likely to raise their risk levels in the second half of the year.This paper also found that in the bear market,losers are more inclined to reduce portfolio risk in the second half of the year to avoid further aggravating the risk of dismissal.In recent years,there are some new trends.Data of last 6 years show that losers tend to raise risk in the second half of the year as competition intensifies.In a bear market(when hiring risk dominates),losers are more likely than winners to increase the level of risk in their portfolios.Finally,the risk adjustment behavior of fund managers in the second half of the year did not bring about significant performance improvement。...