Impact of Endowment Governance Fundamentals on Endowment Investment Quality

Abstract

Fulfilment of endowment sector roles depend on key requirements and systems supporting its management. This research investigates endowment governance fundamentals and their impact on endowment investment quality in controlling its activities and practices; to achieve proper use and sustainability of endowed funds in response to actual needs. The research aims to study endowment governance fundamentals as inputs to endowment institutions development, highlighting the role of said fundamentals in the provision of a safe investment environment; to identify impact of said fundamentals (i.e., ethical conduct, control and accountability, risk management) on the quality of endowment investments.
Research significance is illustrated in supporting the development of administrative practices in endowment institutions and demonstrating how said fundamentals can contribute to development of investment in endowment properties.
Key Findings:
Consideration of governance mechanisms according to specificity of the endowment institution is one key to the development and sustainability of the endowment.
Commitment to implementation of governance fundamentals is one key criterion for investors in making investment decisions.
Ethical conduct, risk management, control and accountability are main endowment governance fundamentals, aiming to rationalize investment decision.
Impact of implementing governance fundamentals (i.e., ethical conduct, risk management, control, and accountability) include attracting largest number of donors and shareholders and expanding endowment investment formulas.
Recommendations:
Expansion of the level of control, accountability and risk management in reports issued by endowment institutions.
Implementation of endowment governance fundamentals in endowment institutions, linking said fundamentals to investment law.
Increase of governance levels by endowment institutions to reflect their actual economic role.