Individual Pension Funds and Capital Market Development in Turkey

Bayar, Yılmaz

doi:10.1515/rebs-2016-0036

Cited by 12 publications

(14 citation statements)

References 24 publications

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“…The literature on pension funds is primarily based on capital market development and the pension system. Most of the literature confirms that private pension funds support capital markets, which is applicable also for Turkey (Bayar 2017).…”

Section: Literature Reviewmentioning

confidence: 79%

Portfolio and Benchmark Returns of Private Pension Funds: A Comparative Analysis for Turkey

Kayhan

Islamoğlu

Apan

2020

bmij

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The purpose of this study is to ascertain whether pension fund returns are in line with benchmark returns taking into account the regulatory structure in Turkey. The methodology of the study is the cumulative portfolio returns. Data is retrieved from TEFAS Platform and official web site of Capital Market Board of Turkey. Portfolio and benchmark of pension funds are compared. Only standard pension funds are covered within the scope of voluntary pension funds of Turkey. Findings are as follows; Portfolio returns and benchmark returns are in line significantly. The results are partly attributable to the regulations about pension fund management and portfolio structure. The paper also shows that in the long term, the volatility of returns decreases and returns prove to conform with the primary purpose of the private pension system.

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Section: Literature Reviewmentioning

confidence: 79%

Portfolio and Benchmark Returns of Private Pension Funds: A Comparative Analysis for Turkey

Kayhan

Islamoğlu

Apan

2020

bmij

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“…Consequently, the study alternative hypothesis can be accepted. These findings are consistent with Vittas (1999), Impavido and Musalem (2000), Hu (2005), Horobet et al (2008), Hryckiewicz (2009), Meng and Pfau (2010), Kim (2010), Niggemann and Rocholl (2010), Raisa (2012), Mrsik and Delova‐Jolevska (2014), Sun and Hu (2014), Enache, Milos, and Milos (2015), Thomas and Spataro (2016), and Bayar (2016), who provide evidence supporting the relationship between pension assets and capital market development in a vast number of developed and developing countries.…”

Section: Resultsmentioning

confidence: 99%

Pension funds, capital market development, and macroeconomic variables: Evidence from Jordan

Daradkah

Al‐Hamdoun

2020

Journal of Public Affairs

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This study investigates the dynamic relationship between pension funds and development of capital market in Jordan over the period 1980–2017. Autoregressive distributed lag (ARDL) approaches for co‐integration (bounds test) are employed to achieve the objectives of the study. Using annual data, the results indicate no statistically significant relationship between pension funds and development of capital market on the short run. However, the co‐integration tests show a statistically significant long‐run equilibrium relationship between pension funds and development of capital market regardless of whether capital market development was measured by market depth or market liquidity. Moreover, the co‐integration tests show a statistically significant long‐run equilibrium relationship between economic growth, and interest rate and development of capital market regardless of whether capital market development was measured by market depth or market liquidity. These findings have important implications for academics, investment managers, and policy makers in Jordan.

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“…These focused on assessing the impact on stock market development (Thom (2014) [5], Meng, and Pfau (2010) [2]). However since this study like similar studies (Zubair (2016) [9], Bayar (2016) [10]), focused on stock market performance and not development, pension fund's investment was used and measured by the total fund investment which represents assets bought by the pension fund with the contributions made by members. Stock market performance was measured by market capitalization found by multiplying the stock price by the total number of shares outstanding.…”

Section: Methodsmentioning

confidence: 99%

“…Capital market performance variables were measured by market capitalization and total value traded; while pension funds investment was measured using the total pension funds assets at the end of every quarter. Bayar (2016) [10] also, examined the effect of individual pension funds on the development of capital market in Turkey. The used a sample of period of ten years.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Similar research on this subject have used Vector Auto regression (VAR) based cointegration test methodology by Johansen (1996) [11] to analyse the effect of pension fund's investment on the capital markets (Thom, 2014 [5]; Melok & Ikhide, 2014 [7]; Zubair, 2016 [9]; Bayar, 2016 [10]). This study replicated the same Vector Auto regression (VAR) based cointegration test methodology by Johansen (1996) [11] to analyse the effect of pension fund's investment on the market capitalization.…”

Section: Econometric Modellingmentioning

confidence: 99%

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The Impact of Pension Funds’ Investments on the Capital Market—The Case of Lusaka Securities Exchange

Musawa¹,

Mwaanga²

2017

AJIBM

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The Lusaka Securities exchange (LuSE) is one of the developing stock markets in Africa. As of 2015 it had only 22 listed companies with the market capitalization of about 5849 million dollars. There are a number of sectors that contribute to the growth of the stock market in Zambia. This study focused on the insurance sector, the pension funds mobilized contributions from the working population and invested in various assets among them is equity. According to the pension scheme investment guidelines (2011), pension funds are mandated to invest not less than 5% but not more than 70% of their total investment in equity. Hence, one would expect pension funds to have a good effect on the Zambian capital market. However the impact cannot be conclusive without undertaking a study to assess the effect of pension funds and capital market. Therefore, this study was an attempt to investigate the long run effect of pension fund's investment on the Lusaka securities exchange performance. The study used quarterly data for the period ranging from January 2009 to December 2015, and employed the cointegration and Vector Error Correction; the results prove the existence of long run relationships between the pension funds and the market capitalization. This relationship implies that if pension funds are encouraged to invest more in equity, it will contribute to the growth of capital market, hence developing. Recommendations have been made to policy markers on how they can use the sector to improve the performance of the capital market.

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Individual Pension Funds and Capital Market Development in Turkey

Cited by 12 publications

References 24 publications

Portfolio and Benchmark Returns of Private Pension Funds: A Comparative Analysis for Turkey

Portfolio and Benchmark Returns of Private Pension Funds: A Comparative Analysis for Turkey

Pension funds, capital market development, and macroeconomic variables: Evidence from Jordan

The Impact of Pension Funds’ Investments on the Capital Market—The Case of Lusaka Securities Exchange

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