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The Role of Investor Type in the Fee Structures of Pension Plans

Author

Listed:
  • Isabel Abinzano

    (Universidad Pública de Navarra)

  • Luis Muga

    (Universidad Pública de Navarra)

  • Rafael Santamaria

    (Universidad Pública de Navarra)

Abstract

We examine the role of the investor type in the fee structure of pension plans. Our examination uses a data set of employer-sponsored and individual private pension funds in Spain. We find different determinants of the fees between these two pension plans. We find evidence of market penetration strategies in individual plans but none in employer-sponsored plans. In these plans, the fees are negatively related to their financial groups’ market share, whereas in individual plans this relation is negative for management fees but positive for custodian fees. Further, except in the case of custodian fees in individual plans, we find that all fees diminish when the custodian and management firms belong to different financial groups.

Suggested Citation

  • Isabel Abinzano & Luis Muga & Rafael Santamaria, 2016. "The Role of Investor Type in the Fee Structures of Pension Plans," Journal of Financial Services Research, Springer;Western Finance Association, vol. 50(3), pages 387-417, December.
    • Handle: RePEc:kap:jfsres:v:50:y:2016:i:3:d:10.1007_s10693-015-0230-1
    DOI: 10.1007/s10693-015-0230-1
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    Cited by:

    1. Abinzano, I. & Muga, L. & Santamaria, R., 2017. "Bad company. The indirect effect of differences in corporate governance in the pension plan industry," International Review of Financial Analysis, Elsevier, vol. 54(C), pages 63-75.
    2. Alda, Mercedes, 2018. "A strategic fund family business decision: The pension fund liquidation," Journal of Business Research, Elsevier, vol. 91(C), pages 248-265.

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    More about this item

    Keywords

    Pension plans; Individual vs. employer-sponsored plans; Fee caps; Censored data;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G19 - Financial Economics - - General Financial Markets - - - Other
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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