IDEAS home Printed from https://ideas.repec.org/h/eme/afeczz/s1569-373220180000020005.html
   My bibliography  Save this book chapter

Should We Trust Fund Managers? A Close Look at the Canadian Mutual Fund Governance

In: International Corporate Governance and Regulation

Author

Listed:
  • Zhongzhi (Lawrence) He
  • Martin Kusy
  • Deepak Singh
  • Samir Trabelsi

Abstract

The Canadian mutual fund setting is unique in that two governance mechanisms – corporate and trust – coexist. This study empirically examines the impact of each mechanism on fund fees and performance. We find that corporate class funds charge higher fees but deliver superior fee-adjusted returns than trust funds. We then analyze the impact of various board characteristics on fees and performance for corporate class funds. We find that a board with smaller size, CEO duality, and a higher percentage of independent directors is more likely to charge lower fees. In addition, smaller boards are strongly associated with higher fee-adjusted performance. Our study supports agency theory over stewardship theory and provides valuable guidelines for Canadian investors and regulatory agencies.

Suggested Citation

  • Zhongzhi (Lawrence) He & Martin Kusy & Deepak Singh & Samir Trabelsi, 2018. "Should We Trust Fund Managers? A Close Look at the Canadian Mutual Fund Governance," Advances in Financial Economics, in: International Corporate Governance and Regulation, volume 20, pages 105-130, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:afeczz:s1569-373220180000020005
    DOI: 10.1108/S1569-373220180000020005
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1569-373220180000020005/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1569-373220180000020005/full/epub?utm_source=repec&utm_medium=feed&utm_campaign=repec&title=10.1108/S1569-373220180000020005
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1569-373220180000020005/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://libkey.io/10.1108/S1569-373220180000020005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Mutual funds; governance structure; agency theory; stewardship theory; board characteristics; fund performance; G14; G15; G35;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:afeczz:s1569-373220180000020005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.