Abstract: This article conducts an analysis of the performance persistence of open-end equity fund based on the data of funds during 2006-2010 from the perspective of dividend and abnormal dividend. The results show that when the fund performance is good, dividend is a behavior to give return to the investors. Dividend can enhance the performance persistence rather than weaken it. So investing a fund with good past performance and dividend is a good investment strategy. Abnormal dividend will have strong negative influence on the funds with good performance and weak negative effect on the funds with bad performance. Abnormal dividend is an important marketing strategy for investing the funds with poor performance, which can relieve the redemption pressure caused by poor fund performance and increase liquid assets in the long run.

Key words: open-ended equity fund; performance persistence; dividend; abnormal dividend