Author(s)

Zongxin Liu, Ziqin Wang, Yan Chen, Yi-Chang Chen

Corresponding Author

Yi-Chang Chen

Abstract

Due to the "carbon peak" and "carbon neutrality" targets proposed in 2020, investors do not understand green investment concepts and find assessing funds' actual performance and operation challenging. This paper uses Chinese stock and equity-biased green funds from 2016 to 2022 as a sample, constructing a comprehensive return index as the performance evaluation indicator. A panel data model is established for multiple linear regression to study the relationship between ownership and industry concentration of green funds and their performance. The study finds that ownership concentration in green funds positively correlates with fund performance, while industry concentration negatively correlates with fund performance. This suggests that fund managers have good stock-picking abilities and informational advantages.

Keywords

Green funds, Ownership concentration, Industry concentration