Unique text narratives can capture attention and leave a lasting impression on readers.In the Chi-nese fund market,managers write periodic reports to introduce fund products to investors.Fund managers sum-marize their past investment strategies and outline future plans without adhering to strict templates in the sec-tions titled"An Analysis of Fund's Investment Strategy and Operation"and"A Brief Outlook on Macroeco-nomic,Securities Market and Industry Trends"of the periodic reports.In this case,can the uniqueness of fund texts attract investors'attention?This paper measures the uniqueness of fund texts based on the texts of a-nalysis and outlook section of the fund's annual and semi-annual reports from 2010 to 2022.Our findings in-dicate that investors are attracted by funds with higher report uniqueness when making investment decisions.This suggests that greater textual uniqueness can lead to greater cash inflows in the future,primarily among in-dividual investors.In this way,managers of underperforming funds are more motivated to produce uniquely crafted texts to compensate for outflows caused by the funds'poor performance.Furthermore,from the per-spective of investor preferences,this flow-attracting ability can be affected by factors including degree of infor-mation asymmetry,the historical performance of the fund,and market macro performance to some extent.Fi-nally,the paper finds that report uniqueness fails to imply beneficial information,which means investors won't obtain higher returns from it.Our study reveals how fund managers take advantage of investors'irrational pref-erences for unique text in order to make a profit,provides further evidence of fund managers'catering behav-ior,and suggests that supervisory bodies should develop appropriate guidelines to direct the content of reports while also educating investors to approach fund reports with a rational and holistic perspective.
fund periodic reportcatering behaviorreport uniquenesscash flow
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