RT Journal Article SR Electronic T1 Mutual Fund Governance and Tax Efficiency JF The Journal of Wealth Management FD Institutional Investor Journals SP 55 OP 66 DO 10.3905/jwm.2015.18.2.055 VO 18 IS 2 A1 D.K. Malhotra A1 Vivek Bhargava A1 Rand Martin YR 2015 UL https://pm-research.com/content/18/2/55.abstract AB In this article, the authors investigate the relationship between mutual fund governance and tax efficiency. They use an overall fund governance grade and components of that governance grade—board quality, managerial incentives, corporate culture, fees, and regulatory compliance—to evaluate the effect of governance on a fund’s tax efficiency. They measure tax efficiency as the percentage of the fund’s return that is lost to taxes. They find that a fund’s overall stewardship grade positively affects its tax efficiency. Of the five determinants of the overall stewardship grade, they find that corporate culture, managerial incentives, and regulatory compliance play significant roles in influencing a mutual fund’s tax efficiency.TOPICS: Mutual funds/passive investing/indexing, legal/regulatory/public policy, wealth management