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

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

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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  • Sayyad, Dr. Munawar & Bhattacharjee, Dr. Kaushik & Pathak, Dr. Rajesh, 2025. "Does good corporate governance reduce cost of mutual fund investments: An emerging market perspective," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005288
    DOI: 10.1016/j.frl.2025.107265
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    References listed on IDEAS

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