Do Governance Mechanisms Matter for Mutual Funds?

Chou, Julia; Ng, Lilian; Wang, Qinghai

doi:10.2139/ssrn.972235

Cited by 13 publications

(16 citation statements)

References 21 publications

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“…There are relatively scant studies on how better governance quality may affect fund performance in the fund industry. Chou et al (2007) show that a fund with better corporate governance ratings tends to invest in firms with strong corporate governance. Factors considered in measuring the board quality rating in the Morningstar include the nature of past board actions, board independence, director ownership stake, and the quality of board oversight.…”

Section: Corporate Governance Index and Fmc Performancementioning

confidence: 99%

“…Studies on U.S. mutual funds provide ample evidence that internal corporate governance plays a crucial role in protecting the interest of fund investors (Adams et al 2010;Chou et al 2007;Ferris and Yan 2009;Gompers et al 2001;Wallison and Litan 2007;Wellman and Zhou 2007). The lack of a fund investor's voice in the governance of FMC, coupled with a weak regulatory environment, heightens the need for effective FMC governance in protecting the interest of fund investors.…”

Section: Does Corporate Governance Matter In the Contractual Form Of mentioning

confidence: 99%

“…The current literature provides empirical evidence that fund governance plays an important role in mutual fund performance (Chou et al 2007;Cremers et al 2009;Wellman and Zhou 2007). Better fund governance may bring fees more in line with performance (Chou et al 2007;Javier and Pablo 2009).…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

“…However, there is little empirical research on the role of corporate governance quality measured by those governance ratings in assessing fund performance (Chou et al 2007;Ertugrul and Hegde 2009;Wellman and Zhou 2007). However, there is little empirical research on the role of corporate governance quality measured by those governance ratings in assessing fund performance (Chou et al 2007;Ertugrul and Hegde 2009;Wellman and Zhou 2007).…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

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Does Corporate Governance Matter in the Contractual Form of Fund Management Companies in China?

Tam

Zhou

2015

Emerging Markets Finance and Trade

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Operating under a regulatory environment with weak enforcement of investor protection, the contractual form of fund management companies (FMCs) in China's emerging fund industry presents some complex governance issues in addition to the conventional agency problems of modern public corporations. Using 288 firm-year observations covering more than 98 percent of FMCs in China, this article presents the first systematic study on whether the quality of corporate governance mechanisms affects the performance of the contractual form of FMCs. Our results suggest that FMCs with good corporate governance do matter in generating favorable performance for fund investors in China.

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Section: Corporate Governance Index and Fmc Performancementioning

confidence: 99%

Section: Does Corporate Governance Matter In the Contractual Form Of mentioning

confidence: 99%

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

See 2 more Smart Citations

Does Corporate Governance Matter in the Contractual Form of Fund Management Companies in China?

Tam

Zhou

2015

Emerging Markets Finance and Trade

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“…Another stream of research examines the proxy voting decisions of mutual funds. Chou, Ng, and Wang (2009) found that mutual funds with better governance tend to use their proxy votes to protect shareholder's rights as opposed to siding with management. Additionally they also found that better governed mutual funds are more likely to hold better governed firms in their portfolios.…”

Section: Introductionmentioning

confidence: 99%

Mutual fund corporate culture and performance

Gottesman

Morey

2012

Rev Financ Econ

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In this paper we test if a mutual fund's own corporate culture predicts fund performance. To do this we use Morningstar's corporate culture ratings for mutual funds and then examine the ability of these corporate culture ratings to predict risk‐adjusted performance of domestic equity funds over the period 2005–2010. Using methods that are robust to survivorship bias, we find there is little significant evidence that corporate culture predicts better fund performance. Indeed, we find that no individual component of the Morningstar stewardship rating including board quality, fees, manager incentives and regulatory issues is able to consistently predict fund performance.

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