Title: Bank Affiliation and Mutual Funds' Green Investments: Evidence from China's Green Credit Policy

Speaker: Wang Xiaoxiao, Postdoctoral Fellow of the School of Economics, Shandong University. Her research fields are fund market and corporate finance, and she has published many articles in journals such as Journal of Banking & Finance and Journal of International Money and Finance.

Abstract: This study investigates how bank-affiliated and unaffiliated mutual funds in China responded to the People's Bank of China's 2016 green credit policy, using it as a policy shock to examine shifts in green investment behavior. We find that bank-affiliated funds significantly increase their investments in green technology innovations relative to unaffiliated funds. This increase not only boosts fund performance and attracts long-term institutional capital but also fosters green investment initiatives within affiliated funds' portfolio firms. These findings support the information advantage hypothesis, highlighting the unique informational and resource-based benefits that bank affiliation confers, rather than supporting a greenwashing narrative. Further analysis reveals that the positive impact of bank affiliation on green investment intensifies under conditions of stringent environmental regulation and heightened public scrutiny. Our results offer a deeper understanding of the role bank affiliation plays in driving ESG investment and provide insights into the mechanisms by which it shapes fund performance and corporate environmental behavior.

Date & time: 19 June 2025, 12:15

Venue: B321, Zhixin Building, Central Campus, Shandong University