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Director expertise and co‐option in industry superannuation funds?

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  • Jin Sug Yang
  • Anna Bedford
  • Martin Bugeja

Abstract

This study examines whether independent directors who possess financial expertise and are independent from the CEO (i.e., non‐co‐opted) are associated with improved outcomes for industry superannuation funds. Our results highlight that independence alone is insufficient to improve fund outcomes. Instead, we find that only non‐co‐opted independent directors benefit fund members in terms of higher performance and lower fees. Moreover, we find that independent directors' financial expertise is not associated with fund performance and fees. Our study has implications for regulators and superannuation funds who are currently debating the need for one‐third independent directors on the board of Australian superannuation funds.

Suggested Citation

  • Jin Sug Yang & Anna Bedford & Martin Bugeja, 2023. "Director expertise and co‐option in industry superannuation funds?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 1249-1283, April.
    • Handle: RePEc:bla:acctfi:v:63:y:2023:i:s1:p:1249-1283
    DOI: 10.1111/acfi.13055
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