Political connections of Chinese fund management companies and fund performance
Document Type
Article
Publication Date
8-1-2023
Abstract
This study uses hand-collected information on shareholders’ backgrounds of mutual funds and their fund management companies (FMCs), and administrative and criminal penalties for insider trading as the proxy of government regulation intensity. We fill a gap in the literature by identifying a positive relationship between funds’ performance and the proportion of state-owned FMC ownership that becomes negative when the Chinese government increased its regulatory effort to reduce informational advantages from political connections obtained through this ownership channel. Results are robust using DiD and IV analyses, placebo tests, propensity score matching, Oster test for missing covariates, channel tests, and alternate ownership classifications.
Publication Title
Financial Review
First Page Number
597
Last Page Number
627
DOI
10.1111/fire.12334
Recommended Citation
He, Chao; Kryzanowski, Lawrence; and Zhao, Yunfei, "Political connections of Chinese fund management companies and fund performance" (2023). Kean Publications. 101.
https://digitalcommons.kean.edu/keanpublications/101