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John C. Adams, Sattar A. Mansi, Takeshi Nishikawa, Internal Governance Mechanisms and Operational Performance: Evidence from Index Mutual Funds, The Review of Financial Studies, Volume 23, Issue 3, March 2010, Pages 1261–1286, https://doi.org/10.1093/rfs/hhp068
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Abstract
We provide new evidence linking board characteristics and performance. Using manually collected governance data from the mutual fund industry, we find an inverse relation between board size and fund performance. We also find evidence that organizational form plays an important role in determining operational performance. Overall, the results are consistent with the notion that there may not be a single optimal board structure that is applicable to all funds, that attempts to regulate board attributes should be considered with caution, and that sponsor-level factors are important board structure considerations.