Efficiency Evaluation And Sustainability Of Green Investment Funds

Green investment funds provide channels for investors to participate in green investment,so they have a wide range of social funding sources,which provides important support for the establishment and development of green projects.The traditional evaluation method of fund performance only focuses on economic benefits,but ignores the environmental benefits of green investment funds,this paper tries to establish an evaluation system that can take into account both economic and environmental benefits,and conduct a more comprehensive and reasonable evaluation of the efficiency of green investment funds in China.Based on the domestic and foreign research related to the evaluation of fund performance,and combined with the actual development of China,we select 29 green securities investment funds established before 2018,then calculate and analyze their efficiency from 2018 to 2020 through the DEA method.The input indicators we selected mainly include these four aspects of fund: cost,risk,profitability and manager's ability,and take into account the heavy stock holdings that measure the environmental benefits of the green investment funds as an indicator reflecting the cost of fund,by means of primacy component analysis,the dimension of selected indicators is significantly reduced,and the principal components are obtained,then we construct the model of DEA,and utilize the performance dichotomy and the cross-moment method to further explore the continuity of the efficiency of green investment funds in China during the time of the research.The main findings obtained are as follows:Firstly,the proportion of funds with effective comprehensive efficiency in the sample of funds is not high,but maintained in a shock upward trend overall,and number of sample funds are technical efficiency invalid or scale efficiency invalid.In general,the level of technical efficiency is higher than that of scale efficiency,which indicates that during the research period,the reason for the invalidity of comprehensive efficiency of green investment funds in China is mainly the invalidity of scale efficiency.Secondly,through the specific analysis of ineffective funds,it is found that most of the causes of invalidity of green investment funds includes the invalidity of scale efficiency.So we further explore the effect of funds size on the effectiveness of green investment funds.The results about the comparison and analysis of the efficiency of green investment funds under different assets show that,on the whole,the effectiveness of medium-sized green investment funds is stronger than that of small green investment funds and large green investment funds.The fund size is too high or too low is not conducive to the improvement of fund efficiency.Thirdly,the results about the test of the continuity of the green investment funds' efficiency show that due to the industry rotation and the characteristics of the green-related industries,there is no obvious sustainability in the efficiency of the green investment funds in China at the time of the investigation.Finally,combined with the conclusions of empirical analysis,this paper gives recommendations from the perspectives of regulatory authorities,fund managers and investors.