Why do bank‐affiliated mutual funds perform better in China?

Haoyue Zhang, Dayong Lv and Wenfeng Wu

Accounting and Finance, 2022, vol. 62, issue 5, 4755-4782

Abstract: Prior literature documents that bank‐affiliated mutual funds underperform unaffiliated funds in developed markets. Using data from the Chinese mutual fund market from 2005 to 2020, we find that Chinese bank‐affiliated funds outperform unaffiliated funds by about 2.63 percent per year. In addition, our results show that bank‐affiliated fund managers have superior active management and better stock‐picking skills, which is preliminarily related to the motivational compensation policies from fund companies and the slight redemption pressure from investors. However, we find no evidence for the potential information advantage of bank‐affiliated funds. Our findings have important implications for fund companies and investors.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/acfi.12998

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:62:y:2022:i:5:p:4755-4782

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().