The study looked at how independent boards and director incentives in mutual funds impact fees, performance, and compliance. They analyzed data from 1995 to 2004 and found that funds with an independent chair charge lower fees. Having more independent directors initially led to higher fees but later resulted in lower fees. Independent boards were linked to lower fund performance. However, funds with directors who own more shares and receive lower compensation had lower fees and better returns. Board characteristics did not affect the likelihood of legal action. The results suggest that simply having independent boards may not always benefit investors unless fees are closely tied to performance.