A Research On The Effect Of Window Dressing Of Open-End Funds On Investor Behavior

Different from traditional fund research,the impact of historical performance on investor behavior is different.This paper studies the performance of fund performance to reveal the influence degree of window decoration behavior probability in investment decision.The fund manager’s window decoration behavior is that the fund manager buys the stocks with good performance and sells the stocks with performance losses before the performance report period,so as to achieve the purpose of the performance of the whitewash combination.Many scholars at home and abroad have successively proved that the fund window decoration behavior is widespread in the fund market.The purpose of the fund manager’s window decoration behavior is to attract the inflow of capital flow,but the fund manager’s window decoration behavior will directly and indirectly affect investors.The difference in investor decision-making will be reflected in the purchase redemption behavior,which is directly reflected in the change of capital flow,so as to whether the window decoration behavior can attract the increase of capital flow,and explore the formation mechanism that leads to the increase of capital flow.This paper studies the differences in the influence of window decoration behavior on institutions and individual investors for investors with different levels of rationality.In the course of research,this paper draws three conclusions through empirical test:(1)The fund manager’s short-term capital flow will increase after the window decoration behavior;(2)the increase of short-term capital flow is due to new investors.Purchased by.The greater the probability that the window decoration behavior will occur,the more capital inflows the fund will have;(3)the institutional investors are extremely disgusted with the response to the window decoration behavior,and the behavior taken is to avoid the purchase or reduce the redemption.The conclusions of this paper have important reference significance for the establishment of a complete information disclosure mechanism in the fund industry and a sound legal supervision system for the regulatory agencies.