Bad company. The indirect effect of differences in corporate governance in the pension plan industry
Fecha
2017Versión
Acceso abierto / Sarbide irekia
Tipo
Artículo / Artikulua
Versión
Versión aceptada / Onetsi den bertsioa
Identificador del proyecto
ES/1PE/ECO2016-77631
Impacto
|
10.1016/j.irfa.2017.09.008
Resumen
This paper analyses the role played by pension plan governance structure and how it impacts on plan fees and plan performance. The results clearly show that fees decrease significantly and performance improves when pension plan governance structures permit full alignment of interests and allow greater capacity for the decision-makers to monitor and discipline the managers. It is also observed tha ...
[++]
This paper analyses the role played by pension plan governance structure and how it impacts on plan fees and plan performance. The results clearly show that fees decrease significantly and performance improves when pension plan governance structures permit full alignment of interests and allow greater capacity for the decision-makers to monitor and discipline the managers. It is also observed that companies managing both employee and individual funds, tend to exploit differences in the internal corporate governance mechanisms of each type of plan in order to nurture employer-sponsored plans at the expense of individual plans. These results suggest that internal corporate governance mechanisms allowing closer alignment with the interests of participants would be preferable to focusing exclusively on setting the minimum proportion of independent directors. [--]
Materias
Pension plan governance,
Bargaining power,
Fees,
Performance
Editor
Elsevier
Publicado en
International Review of Financial Analysis, 54 (2017) 63-75
Departamento
Universidad Pública de Navarra/Nafarroako Unibertsitate Publikoa. Institute for Advanced Research in Business and Economics - INARBE
Versión del editor
Entidades Financiadoras
Financial support from the Spanish Ministry of Econ
omy and Competitiveness, Project
ECO2016-77631-R and Fundación Caja Navarra FUNCAN-07445 are gratefully
acknowledged..