Career To Consider Open-end Fund Manager Investment Behavior Of Empirical Research

This dissertation empirically studies whether china's mutual fund managers' career concerns influence their investment behavior. At first, this dissertation analysis the topic theoretically: we define the concept of fund manager's career concerns, point out the key indexes of evaluating fund manger's abilities, analysis the fund manager's career concerns' incentive effect and its impact on their investment behavior. Then, we conduct empirical studies based on the theoretical analysis. We have to know the practical situation of mutual fund managers' career concerns before examine their impact on fund managers' investment behavior. Thus, this dissertation conducts the empirical studies via two steps: at the first step, we empirically studies the relationship among mutual fund managers' career status, fund output (including relative performance and investment behavior) and manager's experience in order to understand the career concerns of china's mutual fund managers nowadays. Consistent with the theoretical analysis of career concerns, we find that the career status is more output-sensitive for inexperienced fund managers: inexperienced fund managers are more likely to be demoted or fired for bad relative performance than their more experienced counterparts; inexperienced fund managers are also more likely to get negative career status for bold or unconventional investment behavior when their relative performance is lower than the average. At the second step, on the basis of the conclusion in the first step, we put forward the hypothesis of the relationship between fund manager's investment behavior and experience upon the impact of career concerns: in order to avoid the negative career status along with the fail of unconventional investment behavior, inexperienced fund managers deviate less from typical investment behavior than their experienced counterparts. The conclusions support this hypothesis, the investment behavior reflect the impact of career concerns on the mutual fund managers. Lastly, this dissertation summarizes the conclusions, puts forward some revelations for fund investors and fund companies, and plans the directions for further studies.