Corporate Governance in Developing Economies : The Role of Mutual Funds in Corporate Governance in Pakistan

This paper advances the argument that institutional investors, in particular mutual funds, can play a vital role in enhancing corporate governance in emerging economies. Accordingly, regulatory frameworks should be structured in a manner that encourages the growth of the mutual fund industry and enables it to play a proactive role in corporate governance. The paper highlights key regulatory issues that must be addressed while devising suitable regulation for mutual funds, and evaluates the regulation of mutual funds in Pakistan in the light of the propositions laid out in order to demonstrate the application of this approach