Manager characteristics and manager-replacement: How is pension fund performance affected?

Alda, M. (Universidad de Zaragoza)

Resumen: Pension funds are professionally managed investment products designed to cover the retirement needs of individual investors, so managerial control mechanisms are crucial to future retirement income. In this paper, we analyze the effectiveness of the manager replacement mechanism in pension funds. We first examine possible determinants (raw return, excess return, risk and manager and fund characteristics) of manager replacement in a sample of Spanish pension funds. We also analyze the impact of manager replacement on funds’ returns (raw and excess returns) and risk via an analysis of manager characteristics. Finally, we employ an event-study methodology to examine the capacity of new managers to generate positive abnormal returns. Our empirical results show that manager replacement is not motivated only by poor excess returns, but is also linked to manager characteristics. Pension funds with good performance in the pre-replacement period suffer deterioration after replacement, and new managers need about one year to achieve good results. In funds without replacement, managers with longer tenure underperform and female managers are market-risk averse.

Idioma: Inglés

Año: 2016

Publicado en: FINANCE A UVER-CZECH JOURNAL OF ECONOMICS AND FINANCE 66, 2 (2016), 161-180
ISSN: 0015-1920

Originalmente disponible en: Texto completo de la revista

Factor impacto JCR: 0.604 (2016)

Categ. JCR: BUSINESS, FINANCE rank: 74 / 96 = 0.771 (2016) - Q4 - T3

Factor impacto SCIMAGO: 0.275 - Accounting (Q3) - Finance (Q3) - Economics and Econometrics (Q3)

Tipo y forma: Artículo (Versión definitiva)

Área (Departamento): Área Economía Finan. y Contab. (Dpto. Contabilidad y Finanzas)