IDEAS home Printed from https://ideas.repec.org/a/udc/esteco/v40y2013i2p157-178.html
   My bibliography  Save this article

Management fees: Determinants and influence of legal limits. Evidence from Spanish pension funds

Author

Listed:
  • Mercedes Alda
  • Luis Ferruz

Abstract

Pension funds in Spain have become of considerable importance in recent years. In fact, many studies have focused on fund performance and the adverse impact of fees, although little work has been done on analysis of the determinants of fees. Even though fees are restricted by legal limits in many countries, traditional models do not take these limits into account, and results could be biased; therefore, censored models (such as Tobit or CLAD) may provide a better fit. In this work, we study the determinants of management fees in Spanish equity pension funds. We find a better fit in the CLAD model, which provides unbiased and consistent estimators. Additionally, older and larger pension funds charge greater management fees and these fees increase with low volatility. However, fund returns and market returns barely affect such fees.

Suggested Citation

  • Mercedes Alda & Luis Ferruz, 2013. "Management fees: Determinants and influence of legal limits. Evidence from Spanish pension funds," Estudios de Economia, University of Chile, Department of Economics, vol. 40(2 Year 20), pages 157-178, December.
    • Handle: RePEc:udc:esteco:v:40:y:2013:i:2:p:157-178
    as

    Download full text from publisher

    File URL: http://www.estudiosdeeconomia.cl/publicacion/show/id/1415
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Pension funds; management fees; determinants; censored models.;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:udc:esteco:v:40:y:2013:i:2:p:157-178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Verónica Kunze (email available below). General contact details of provider: https://edirc.repec.org/data/deuclcl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.