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

Daradkah, Demeh; Al‐Hamdoun, Nadia

doi:10.1002/pa.2215

Cited by 12 publications

(13 citation statements)

References 44 publications

(48 reference statements)

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“…Gillan and Starks (2000) focus on two major U.S. pension funds and find that pension fund involvement in companies improves corporate governance practices. Daradkah and Al-Hamdoun (2021) do not find any shortterm effects of pension funds on capital market development in Jordan, but they conclude that in the long run, pension funds and capital market development are co-integrated.…”

Section: Literaturementioning

confidence: 82%

Voluntary Private Pension Funds and Capital Market Development

Eğrican

Kayhan

2022

aamjaf

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We examine voluntary private pension funds and their relationship to capital market development. Using data from Turkey, we analyse depth, efficiency and liquidity indicators of capital markets after the introduction of voluntary private pension funds in 2003. Overall, our findings indicate that the introduction of voluntary private pension plans are positively associated with indicators of capital market development, focusing on market depth (such as market capitalisation and trading volume) in both debt and equity markets. We also observe that indicators for other more recently established markets are also positively associated with the introduction of voluntary pension plans. In contrast, equity market turnover shows a negative association. These findings, along with the positive association with the corporate governance index, suggest that pension funds are important for capital market development and for corporate governance of firms as they are long-term investors. However, the introduction of state contributions in 2013 is not robust to alternative specifications.

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Section: Literaturementioning

confidence: 82%

Voluntary Private Pension Funds and Capital Market Development

Eğrican

Kayhan

2022

aamjaf

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“…Studies by Sun and Hu (2014), Stewart et al (2017), Daradkah and Al-Hamdoun (2021), Sanusi & Kapingura, (2021), Nwanne, (2015, Farayibi & Adesoji (2016), Ngugi (2012), Fashagba (2021) and Ebenezer et al, (2019) had methodological gap. In addition, all the mentioned studies did not employ desktop review methodology.…”

Section: Discussionmentioning

confidence: 99%

“…Foreign investment limits should be increased while encouraging innovative investment mechanisms should also be prioritized, according to the report. Studying Jordan's 1980-2017 capital market development in relation to pension funds, Daradkah and Al-Hamdoun (2021) found no statistically significant influence between pension funds and capital market development, but they found a statistically significant long-term balance between pension funds and capital market development (both in the market depth and its liquidity).…”

Section: Empirical Reviewmentioning

confidence: 94%

Role of pension management on economic growth: A review of literature

Kajwang¹

2022

IJRBS

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Pension funds enable individuals to save over their working lives to finance their consumption needs in retirement, either through a lump sum or through the provision of an annuity, while also supplying funds to end-users such as corporations, other households (via securitized loans), or governments for investment or consumption. The study's goal is to investigate the impact of pension management on economic growth. A desktop literature review was used for this purpose. Relevant seminal references and journal articles for the study were identified using Google Scholar. The inclusion criteria entailed papers that were not over ten years old. The study concluded that contributory pensions have the potential to increase GDP with competent risk and portfolio management by pension fund administrators and custodians (GDP). The findings indicated a positive relationship between retirement pension assets and economic growth. The study recommends that policymakers and pension fund regulators devise feasible methods for investing pension money to benefit the economy while also maintaining the safety of the invested assets so as not to risk the interests of pension fund owners. To enhance economic growth, the study also suggested eliminating pension fund management delays, administrative bottlenecks, and corruption.

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“…Following Daradkah & Al-Hamdoun [39], economic welfare is measured by growth rate of GDP per capita. It is an indicator of the total income generated by economic activity in a country, and measures citizens' material well-being and or living standards.…”

Section: Methodsmentioning

confidence: 99%

“…The study concludes that the operational framework/administration of pension is strongly inefficient as it does not deliver on its core mandate of better-quality infrastructure and overall economic development. Daradkah and Al-Hamdoun [39] examined the dynamic interplay between pension fund, macro-fundamentals and capital market development in Jordan from time 1980 to 2017. Employing an ARDL approach on annual series, they found significant relationship only on the long run.…”

Section: The Intermediation Theory By Gurley and Shawmentioning

confidence: 99%

Pension Assets Investments in the Nigerian Economy

Olulu-Briggs¹

2023

Saudi J Econ Fin

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This study looked into pension assets investments and its impact in the Nigerian economy. The investments includes quarterly reports of corporate debt securities, government bond securities, mutual funds’ investments, money market instruments, private equity funds and real estate securities from 2004 – 2020, and was sourced from the statistics database of the National Pension Commission, the Central Bank of Nigeria and the World data bank. The statistical measures used to analyze the data are the descriptive test, Unit root test, Co-integration test, Vector error correction, Causality and Impulse response function. The outcome of the analysis show that the variables were stationary after first differences were taken; and were also co-integrated at 2 lags indicating that both short and long run equilibrium relationship exist among the variables. From the vector error correction model, previous years’ deviations from long run equilibrium had a 0.09% speed of adjustment; leading to a short run equilibrium. The Causality test reveal that changes in government bond securities lead to changes in real estate securities and changes in money market investments leads to changes in government bond securities. In addition, the impulse response demonstrates that a shock to the system produces more negative responses than positive ones. The study thus recommends that the pension industry should vigorously create more awareness on the importance of employee pension plan; develop more e-channels to help rake in investible funds as well as develop more innovative products to support diversification of pension fund in different assets classes among others.

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

Cited by 12 publications

References 44 publications

Voluntary Private Pension Funds and Capital Market Development

Voluntary Private Pension Funds and Capital Market Development

Role of pension management on economic growth: A review of literature

Pension Assets Investments in the Nigerian Economy

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