Impact of Institutional Environment on Fund Compliance Behavior: A Policy Shock Analysis Based on the “Performance Comparison Benchmark Guidelines”

DOI

10.2991/978-94-6239-801-6_58How to use a DOI?

Keywords

Institutional Environment; Conformist Behavior; Public Mutual Funds; Performance Comparison Benchmark; Policy Evaluation

Abstract

China’s public mutual funds face the dilemma of “funds making profits while investors do not.“ In 2025, the China Securities Regulatory Commission attempted to curb opportunistic behavior through institutional constraints. This paper utilizes this policy shock to examine the impact of the institutional environment on fund compliance behavior and compares the differences in policy effects across various institutional settings. The study found: First, the “Performance Comparison Benchmark Guidelines” significantly curbed fund compliance behavior. After the policy’s expected effects became apparent in 2023, the lottery weighting of funds decreased by 1.137 percentage points compared to 2021, by 2.026 percentage points in 2024, and by 1.950 percentage points in 2025. Second, stock funds respond significantly stronger to policy shocks than bond funds, indicating that policy effects are more pronounced in sectors with weaker institutional environments; third, the weight allocation of bond funds is significantly lower than that of stock funds. This paper is the first to use policy shocks to examine the actual impact of institutional constraints on fund compliance behavior, providing direct evidence for evaluating the “Performance Benchmark Guidelines” and empirical support for the precise design of regulatory policies.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yu Yuan
PY  - 2026
DA  - 2026/10/23
TI  - Impact of Institutional Environment on Fund Compliance Behavior: A Policy Shock Analysis Based on the “Performance Comparison Benchmark Guidelines”
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 541
EP  - 548
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_58
DO  - 10.2991/978-94-6239-801-6_58
ID  - Yuan2026
ER  -