Does good corporate governance reduce cost of mutual fund investments: An emerging market perspective

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-03-21 DOI:10.1016/j.frl.2025.107265

Dr. Munawar Sayyad (Assistant Professor - Finance and Accounting) , Dr. Kaushik Bhattacharjee (Associate Professor - Finance and Accounting) , Dr. Rajesh Pathak (Associate Professor - Finance and Accounting)

引用次数: 0

Abstract

We investigate if the quality of corporate governance affects the cost of investing in mutual funds. Using data of mutual funds from India, we show that firms with smaller and more independent board associate with lower total expense ratio (TER). Moreover, bank sponsored funds and funds from privately held AMCs exhibit lower TER. Additionally, investing in funds with women directors on the board is cost effective. Our results are consistent with agency and signaling theory and survive to the battery of robustness test including alternate specifications, methods (Tobit and Quantile regressions) and test of endogeneity.

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance