{"title":"外资所有权、机构距离与共同基金业绩:来自中国的证据","authors":"Yue Zhang , Caiping Wang , Yufei Chen","doi":"10.1016/j.pacfin.2024.102474","DOIUrl":null,"url":null,"abstract":"<div><p>The existing literature documents mixed results on the impact of formal institutional distance on the performance of cross-border business. We contribute to this debate by providing evidence in the context of the Chinese mutual fund industry which was recently fully opened to foreign participants. Using a sample of 2115 actively managed equity mutual funds coming from 125 Chinese fund companies covering the period between July 2006 and September 2020, we show a negative relationship between formal institutional distance and funds' risk-adjusted performance. The funds offered by international joint venture fund companies (IJVs) with high institutional distance underperform the comparable domestic funds, whilst such an underperformance is not observed for the funds coming from IJVs with low institutional distance. Consistently, the institutional distance increases the probability of the cooperation failure between the foreign and the domestic partners of the IJVs. Policy implications for the international joint venture in the fund industry are discussed.</p></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":"87 ","pages":"Article 102474"},"PeriodicalIF":4.8000,"publicationDate":"2024-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Foreign ownership, institutional distance and mutual fund performance: Evidence from China\",\"authors\":\"Yue Zhang , Caiping Wang , Yufei Chen\",\"doi\":\"10.1016/j.pacfin.2024.102474\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"<div><p>The existing literature documents mixed results on the impact of formal institutional distance on the performance of cross-border business. We contribute to this debate by providing evidence in the context of the Chinese mutual fund industry which was recently fully opened to foreign participants. Using a sample of 2115 actively managed equity mutual funds coming from 125 Chinese fund companies covering the period between July 2006 and September 2020, we show a negative relationship between formal institutional distance and funds' risk-adjusted performance. The funds offered by international joint venture fund companies (IJVs) with high institutional distance underperform the comparable domestic funds, whilst such an underperformance is not observed for the funds coming from IJVs with low institutional distance. Consistently, the institutional distance increases the probability of the cooperation failure between the foreign and the domestic partners of the IJVs. Policy implications for the international joint venture in the fund industry are discussed.</p></div>\",\"PeriodicalId\":48074,\"journal\":{\"name\":\"Pacific-Basin Finance Journal\",\"volume\":\"87 \",\"pages\":\"Article 102474\"},\"PeriodicalIF\":4.8000,\"publicationDate\":\"2024-08-08\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Pacific-Basin Finance Journal\",\"FirstCategoryId\":\"96\",\"ListUrlMain\":\"https://www.sciencedirect.com/science/article/pii/S0927538X24002269\",\"RegionNum\":2,\"RegionCategory\":\"经济学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q1\",\"JCRName\":\"BUSINESS, FINANCE\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Pacific-Basin Finance Journal","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0927538X24002269","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
Foreign ownership, institutional distance and mutual fund performance: Evidence from China
The existing literature documents mixed results on the impact of formal institutional distance on the performance of cross-border business. We contribute to this debate by providing evidence in the context of the Chinese mutual fund industry which was recently fully opened to foreign participants. Using a sample of 2115 actively managed equity mutual funds coming from 125 Chinese fund companies covering the period between July 2006 and September 2020, we show a negative relationship between formal institutional distance and funds' risk-adjusted performance. The funds offered by international joint venture fund companies (IJVs) with high institutional distance underperform the comparable domestic funds, whilst such an underperformance is not observed for the funds coming from IJVs with low institutional distance. Consistently, the institutional distance increases the probability of the cooperation failure between the foreign and the domestic partners of the IJVs. Policy implications for the international joint venture in the fund industry are discussed.
期刊介绍:
The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.