Does Regulation Hurt Pension Funds' Performance? Evidence from Strongly Regulated Pension Fund Industries

22 Pages Posted: 8 Mar 2008

See all articles by Martin T. Bohl

Martin T. Bohl

University of Muenster

Judith Lischewski

University of Muenster

Svitlana Voronkova

Centre for European Economic Research (ZEW)

Date Written: February 2008

Abstract

This paper presents a comparative analysis of pension funds' performance in Eastern Central Europe. In theoretical literature it is argued that investment limits and performance regulations may have a negative influence on the performance of the corresponding funds. We estimate a number of unconditional performance measures based on the CAPM for Polish and Hungarian pension funds, which face strict investment regulations. Our finding suggest that stringent regulatory frameworks may not necessarily harm the performance of the pension funds acting in these Eastern Central European countries. These results are robust for several model specifications. Estimates of the Polish and Hungarian pension fund performance are compared with those available in the existing literature for the UK and the USA pension fund industries.

Keywords: Pension fund management, investment and performance regulation, performance measurement, Eastern Central European stock markets, Emerging Markets

JEL Classification: G23, G28

Suggested Citation

Bohl, Martin T. and Lischewski, Judith and Voronkova, Svitlana, Does Regulation Hurt Pension Funds' Performance? Evidence from Strongly Regulated Pension Fund Industries (February 2008). Available at SSRN: https://ssrn.com/abstract=1101625 or http://dx.doi.org/10.2139/ssrn.1101625

Martin T. Bohl

University of Muenster ( email )

Schlossplatz 2
D-48149 Muenster, D-48149
Germany

Judith Lischewski (Contact Author)

University of Muenster ( email )

Muenster, D-48143
Germany

Svitlana Voronkova

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

HOME PAGE: http://www.zew.de/de/mitarbeiter/mitarbeiter.php3?action=mita&kurz=sva

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