Does Mutual Fund Environmental Performance Affect Mutual Fund Performance And Flows?

In recent years,China's environmental pollution problem has received more and more attention.On August 3,2016,the People's Bank of China and other seven ministries jointly issued "the guidance on building green financial system",advocating "develop green financial system,set up green development fund".The financial industry is increasingly concerned about environmental protection industry.This article used an asset-weighted composite corporate environmental performance to study the effects of fund environmental performance on fund performance and flows.In this article,the impact of environmental performance on fund economic performance and performance-flow-relationship(PRR)is studied by the open active fund with a shareholding ratio more than 75% in 2007-2016.The empirical results found that the fund's environmental performance and future economic performance is positive related.Further,this positive relationship is caused by decreasing investment in heavy pollution industry rather than increasing investment in environmental protection industry.Further,we find that the good environmental performance of the fund does not promote the fund's economic performance sustainability.In addition,the fund's green performance is positively correlated with the fund flows,which indicates that investors' loyalty to the fund with high environmental performance is higher.In this article,the research makes up for the consequences of research on fund environmental performance and environmental performance,helping us understand the fund investor attitudes towards fund environmental performance,to better promote the construction of "green finance" system.