Are Fund Managers Investing In Lottery Stocks Their Own Preferences Or Catering To Investors?

The focus of this article is that the fund holds the investment behavior of lottery stocks.Lottery refers to a way to collect huge bonuses in a small cost.Used to the stock market refers to the stock market with a lower cost of investment at a lower cost but obtaining a huge income probability.The existing theory believes that investors’ gaming preferences are a bias preference.The partiality is used to measure the asymmetry of the probability distribution of the random variable,that is,how much the number of data sequences are distributed on both sides of the mean.The partial preference hypothesis believes that investors prefer positive bias assets,overestimate the probability of acquiring high returns,and are willing to pay a higher price for it.my country’s capital market is not mature,and the proportion of retail investors has a high speculative atmosphere.Investors regard the stock market as the gambling market.It is hoped that the transaction is small,the transactions are frequent,and the pursuit of pursuit and falling and falling is serious.This has adversely affected the healthy and stable development of the stock market.Institutional investors have always been regarded as rational investors.They are more professional and mature than individual investors,but there are many irrational behaviors.The phenomenon of foam riding is endless,and the behavior of institutional investors shows a strong gambling color,and has not played a role in stabilizing the stock market of institutional investors.Therefore,the "gambling" problem of research fund managers helps us understand the behavior preferences of institutional investors,and then standardize the development of institutional investors and improve the construction of the regulatory system.The fund manager’s stock selection itself relies on its own analysis ability,but due to the consideration of performance remuneration and career concerns,the fund manager will meet investors’ preferences to obtain funds.Therefore,the fund holding lottery stock motivation is active preferences or passively catering to investors is the main issue of this article.To study this issue,this article conducts empirical discussions from three aspects:(1)Whether the fund can cater to investors through holding lottery stocks,that is,whether the fund holds lottery shares attracts capital inflows.(2)Why investors respond to the fund holding lottery stocks? Discuss the reason why the fund holding lottery stocks is attractive to investors(3)Do the fund manager have gaming preferences in itself? Through the above three aspects,the core point of this article the fund holding the motivation of lottery stocks.This article takes the research samples from 2003 to 2022 stock funds and partial stock hybrid funds,and use panel regression and Fama-Macbeth to conduct an empirical test.Preferences attract funds inflow.Fund holding lottery stocks and fund net funds for the next period are significantly positive,that is,the higher the proportion of the fund holding lottery stocks,the funding for the fund in the next period Factors in the case of fund performance,the result still exists.(2)Compared with the fund’s lottery return,the fund holding lottery stocks can be significantly and lasting forecast of the fund shaped reward in the future.As a result,investors are willing to purchase funds holding lottery stocks.(3)The fund manager itself does not prefer lottery stocks.Fund manager’s self-holding proportion is significantly negatively related to the holding of the fund lottery stock in the next issue,that is,the higher the proportion of self-holding,the lower the holdings of the fund in the next period of the fund.The above results have jointly proved that the fund manager’s "gambling" is to cater to investors rather than its own preferences;the behavior makes the fund manager short and advanced,infringe on the interests of investors,and is not conducive to the healthy and orderly development of the fund market.This article has a certain academic value and practical value.On the one hand,it enriches the research of the fund holding the motivation of lottery stocks and provides a new perspective of research.On the other hand,the fund is in charge of the large amount of funds of investors.Whether the fund manager rationally closely affects the vital interests of investors.Through the results of the research,it provides a new direction for the future supervision of the fund and the training of institutional investors.Investment provides theoretical guidance.