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

Dr. Munawar Sayyad, Dr. Kaushik Bhattacharjee and Dr. Rajesh Pathak

Finance Research Letters, 2025, vol. 79, issue C

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.

Keywords: Mutual Funds; Corporate governance; TER; Emerging Market (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325005288
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005288

DOI: 10.1016/j.frl.2025.107265

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().