Are better governed funds better monitors?

Journal of Corporate Finance

Volumn 17, Issue 5, 2011, Pages 1254-1271

  Chou, Julia ^a   Ng, Lilian ^b   Wang, Qinghai ^c  

^a FLORIDA INTERNATIONAL UNIVERSITY   (United States)

^b UNIVERSITY OF WISCONSIN MILWAUKEE   (United States)

^c GEORGIA INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Corporate governance; Mutual funds; Proxy voting

Indexed keywords

EID: 80051479229     PISSN: 09291199     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jcorpfin.2011.06.008     Document Type: Article

References (36)

1. Adams J., Mansi S., Nishikawa T. Internal governance mechanisms and operational performance: evidence from index mutual funds. Rev. Financ. Stud. 2010, 23:1261-1286.
2. Alexander C., Chen M., Seppi D., Spatt C. The role of advisory services in proxy voting. Working Paper NBER 2009, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1434658.
3. Almazan A., Hartzell J., Starks L. Active institutional shareholders and costs of monitoring: evidence from executive compensation. Financ. Manage. 2005, 34:5-34.
4. Bushee B., Carter M., Gerakos J. Institutional investor preferences for corporate governance mechanisms. Working paper University of Pennsylvania 2010, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1070168.
5. Carhart M. On persistence in mutual fund performance. J. Finance 1997, 52:57-82.
6. Carleton W., Nelson J., Weisbach M. The influence of institutions on corporate governance through private negotiations: evidence from TIAA-CREF. J. Finance 1998, 53:1335-1362.
7. Chen J., Hong H., Huang M., Kubik J. Does fund size erode mutual fund performance? The role of liquidity and organization. Am. Econ. Rev. 2004, 94:1276-1302.
8. Chen X., Harford J., Li K. Monitoring: which institutions matter?. J. Financ. Econ. 2007, 86:279-305.
9. Chen Q., Goldstein I., Jiang W. Directors' ownership in the U.S. mutual fund industry. J. Finance 2008, 63:2629-2677.
10. Chung K., Zhang H. Corporate governance and institutional ownership. J. Financ. Quant. Anal. 2011, 46:247-273.
11. Cremers K., Nair V. Governance mechanisms and equity prices. J. Finance 2005, 60:2859-2894.
12. Cremers K., Petajisto A. How active is your fund manager? A new measure that predicts performance. Rev. Financ. Stud. 2009, 22:3329-3365.
13. Davis G., Kim E. Business ties and proxy voting by mutual funds. J. Financ. Econ. 2007, 85:552-570.
14. Del Guercio D., Dann L., Partch M. Governance and boards of directors in closed-end investment companies. J. Financ. Econ. 2003, 69:111-152.
15. Del Guercio D., Seery L., Woidtke T. Do boards pay attention when institutional investor activists "just vote no"?. J. Financ. Econ. 2008, 90:84-103.
16. Fama E., French K. Luck versus skill in the cross-section of mutual fund returns. J. Finance 2010, 65:1915-1947.
17. French K. The cost of active investing. J. Finance 2008, 63:1537-1573.
18. Geczy C., Stambaugh R., Levin D. Investing in socially responsible mutual funds. Working paper University of Pennsylvania 2005, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=416380.
19. Gil-Bazo J., Ruiz-Verdú P. The relation between price and performance in the mutual fund industry. J. Finance 2009, 64:2153-2183.
20. Gompers P., Ishii J., Metrick A. Corporate governance and equity prices. Q. J. Econ. 2003, 118:107-155.
21. Harris M., Raviv A. The design of securities. J. Financ. Econ. 1989, 24:255-287.
22. Hartzell J., Starks L. Institutional investors and executive compensation. J. Finance 2003, 58:2351-2374.
23. Jensen M., Meckling W. Theory of the firm: managerial behavior, agency costs, and ownership structure. J. Financ. Econ. 1976, 3:305-360.
24. Khorana A., Tufano P., Wedge L. Board structure, mergers and shareholder wealth: a study of the mutual fund industry. J. Financ. Econ. 2007, 85:571-598.
25. Matvos G., Ostrovsky M. Cross-ownership, returns, and voting in mergers. J. Financ. Econ. 2008, 89:391-403.
26. Matvos G., Ostrovsky M. Heterogeneity and peer effects in mutual fund proxy voting. J. Financ. Econ. 2010, 98:90-112.
27. Mayer C. Corporate governance, competition, and performance. J. Law Soc. 1997, 24:152-176.
28. McCahery J., Sautner Z., Starks L. Behind the scenes: the corporate governance preferences of institutional investors. Working Paper University of Texas at Austin 2010, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1571046.
29. Morgan A., Poulsen A., Wolf J. The evolution of shareholder voting for executive compensation schemes. J. Corp. Finance 2006, 12:715-737.
30. Morgan A., Poulsen A., Wolf J., Yang T. Mutual funds as monitors: evidence from mutual fund voting. J. Corp. Finance 2011, 17:914-928.
31. Ng L., Wang Q., Zaiats N. Firm performance and mutual fund voting. J. Bank. Finance 2009, 33:2207-2217.
32. Parrino R., Sias R., Starks L. Voting with their feet: institutional ownership changes around forced CEO turnover. J. Financ. Econ. 2003, 68:3-47.
33. Pozen R.C. The Mutual Funds Business 2002, Houghton Mifflin, New York. second ed.
34. Shleifer A., Vishny R. A survey of corporate governance. J. Finance 1997, 52:737-783.
35. Tirole J. Corporate governance. Econometrica 2001, 69:1-35.
36. Tufano P., Sevick M. Board structure and fee-setting in the U.S. mutual fund industry. J. Financ. Econ. 1997, 46:321-355.