TITLE:
Environmental Performance and Financial Performance of Green Mutual Fund—Evidence from China
AUTHORS:
Yin Yuan
KEYWORDS:
Green Fund, Environmental Performance, Financial Performance
JOURNAL NAME:
Open Journal of Business and Management,
Vol.5 No.4,
October
27,
2017
ABSTRACT: We compared the environmental performance and financial performance
between green fund and non-green fund to explore the balance between environmental
goals and financial objectives of green funds by in the context of
China government’s strong advocacy of “developing green finance and setting
up green development fund”. In this paper, the open-ended active fund with
the shareholding ratio of over 75% is taken as the object of study. By the PSM
method, 28 green funds are matched by 1:5 to obtain 140 non-green funds.
Through the large sample data of 2010-2016, the results show that: 1) the
green fund investment portfolio is cleaner than non-green fund. From the
long-term environmental performance of the holding enterprises, the green
and the non-green fund’s environmental performance and financial performance
are tested empirically. Fund environmental performance is better than
non-green fund. From the perspective of the short-term environmental performance
of the holding enterprises, there is no difference between the environmental
performance of the green fund and the non-green fund. 2) The
excess return of the green fund is higher than that of the non-green fund. In
the period of China’s economic transformation, green funds not only assume
the responsibility of investing in environmental performance of enterprises,
but also take into account its financial performance, to achieve a win-win result
of low pollution and high yield.