Theoretical and Applied Economics
No. 3 / 2011 (556)
An Analysis of the Correlation between Size and Performance of Private Pension Funds
Bucharest Academy of Economic Studies
Maria Iuliana SANDU
Bucharest Academy of Economic Studies
Abstract. Using present performance measures, we find that inflation rate is barely covered by Romanian private pension funds strategies. The paper looks at effects of scale on performance. This issue is investigated empirically using data from Romanian private pension funds. We find results consistent with prior literature in that size, measured as total net assets, erodes performance. The highly regulated Romanian private pension environment gives rise to various interpretations for size detracting performance that do not sprout from the “asymmetric information” theory. We explain the empirical results as an effect of “perfect scaling”.
Contents
Antithetic Foundations of Economics
Capital Budgeting: a Tax Shields’ “Mirage”?
Convergence of the Policies for Promoting Total Quality Management in the Public Administrations of Balkan States – European Union Member States
Industrial District as a Corporation
Aspects of the Normalization of Managerial Accounting in Romania on a Microeconomic Level
An Analysis of the Correlation between Size and Performance of Private Pension Funds
Management of the Environmental Risk – an Economic-Social Priority
Implications of European Directives in the Assessment of Insurance Companies