An Analysis of the Correlation between Size and Performance of Private Pension Funds

Vasile Robu and Maria Iuliana Sandu
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Vasile Robu: Bucharest Academy of Economic Studies
Maria Iuliana Sandu: Bucharest Academy of Economic Studies

Theoretical and Applied Economics, 2011, vol. XVIII(2011), issue 3(556), 107-116

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”.

Keywords: performance; scale; private pension market; panel data; perfect scaling. (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:3(556):y:2011:i:3(556):p:107-116

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