Abstract

http://ssrn.com/abstract=2090096
 
 

References (26)



 
 

Citations (6)



 
 

Footnotes (21)



 


 



Defined Contribution Pension Plans: Sticky or Discerning Money?


Clemens Sialm


University of Texas at Austin - McCombs School of Business; National Bureau of Economic Research (NBER)

Laura T. Starks


University of Texas at Austin - Department of Finance

Hanjiang Zhang


Nanyang Technological University - Nanyang Business School

January 15, 2014

Journal of Finance, Forthcoming

Abstract:     
Participants in defined contribution (DC) retirement plans rarely adjust their portfolio allocations, suggesting that their investment choices and consequent money flows are sticky and also not discerning. Yet, the participants’ inertia could be offset by DC plan sponsors, who adjust the plan’s investment options. We examine these countervailing influences on flows into U.S. mutual funds. We find that flows into funds that derive from DC assets are more volatile and exhibit more performance sensitivity than non-DC flows, primarily due to the adjustments of the investment options by the plan sponsors. Thus, DC retirement money is less sticky and more discerning.

Number of Pages in PDF File: 57

Keywords: Flow-Performance Sensititivity, Defined Contribution Pension Plans, Retirement Savings

JEL Classification: G20, G23, G11

Accepted Paper Series





Download This Paper

Date posted: June 24, 2012 ; Last revised: February 12, 2014

Suggested Citation

Sialm, Clemens and Starks, Laura T. and Zhang, Hanjiang, Defined Contribution Pension Plans: Sticky or Discerning Money? (January 15, 2014). Journal of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2090096 or http://dx.doi.org/10.2139/ssrn.2090096

Contact Information

Clemens Sialm (Contact Author)
University of Texas at Austin - McCombs School of Business ( email )
Austin, TX 78712
United States
HOME PAGE: http://faculty.mccombs.utexas.edu/Clemens.Sialm/
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Laura T. Starks
University of Texas at Austin - Department of Finance ( email )
Red McCombs School of Business
Austin, TX 78712
United States
512-471-5899 (Phone)
512-471-5073 (Fax)
Hanjiang Zhang
Nanyang Technological University - Nanyang Business School ( email )
S3-B1A-05 Nanyang Avenue
Singapore, 639798
Singapore
Feedback to SSRN


Paper statistics
Abstract Views: 920
Downloads: 213
Download Rank: 82,651
References:  26
Citations:  6
Footnotes:  21

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.422 seconds