Pension funds and stock market development: Evidence from OECD countries

Bayar Y., Kilic M.

International Journal of Sustainable Economy, cilt.11, sa.3, ss.273-285, 2019 (Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 11 Sayı: 3
  • Basım Tarihi: 2019
  • Doi Numarası: 10.1504/ijse.2019.100672
  • Dergi Adı: International Journal of Sustainable Economy
  • Derginin Tarandığı İndeksler: Scopus
  • Sayfa Sayıları: ss.273-285
  • Anahtar Kelimeler: Panel data analysis, Pension funds, Stock markets, Sustainability
  • Uşak Üniversitesi Adresli: Evet

Özet

Pension funds have experienced considerable expansions in the value of their asset holdings after the gradual global transition from single tier pension system to multi-tiered pension systems, due to public pensions becoming financially unsustainable. Increases in the value of the pension funds' financial asset holdings have enhanced their efficiency in capital markets. This paper investigates the effect of pension funds as an institutional investor on stock market development in 18 OECD member states for the period of 2001-2015 with panel data analysis. The findings suggest that pension funds affected stock market development positively in the long run.