Political connections of Chinese fund management companies and fund performance
研究发现，基金公司国有持股比例与基金业绩正相关，但政府加强监管后，这种政治关联带来的信息优势消失，关系转为负相关。
Abstract This study uses hand‐collected information on shareholders’ backgrounds of mutual funds and their fund management companies (FMCs), and administrative and criminal penalties for insider trading as the proxy of government regulation intensity. We fill a gap in the literature by identifying a positive relationship between funds’ performance and the proportion of state‐owned FMC ownership that becomes negative when the Chinese government increased its regulatory effort to reduce informational advantages from political connections obtained through this ownership channel. Results are robust using DiD and IV analyses, placebo tests, propensity score matching, Oster test for missing covariates, channel tests, and alternate ownership classifications.