Directors Who Serve Multiple Pension Funds: Are They Conflicted or Skilled?

52 Pages Posted: 27 Feb 2020

See all articles by Elizabeth Ooi

Elizabeth Ooi

The University of Western Australia - UWA Business School

Date Written: January 20, 2020

Abstract

Directors who hold concurrent directorships within a single industry may have an information advantage or face conflicts of interest. This practice is permitted in the Australian pension fund industry, even between competing funds. Results show that funds with directors who hold competing board seats are associated with poor fund performance. Non-competing seats are associated with better fund performance in complex funds. Directors favor positions which align with personal and reputational incentives. Overall, the opposing arguments regarding the effect of multiple directorships are not mutually exclusive but dependent on cross-sectional variation in fund characteristics and the types of directorships held.

Keywords: Pension Funds, Multiple Directorships, Fund Performance

JEL Classification: G230, G300

Suggested Citation

Ooi, Elizabeth, Directors Who Serve Multiple Pension Funds: Are They Conflicted or Skilled? (January 20, 2020). Journal of Banking and Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3527188

Elizabeth Ooi (Contact Author)

The University of Western Australia - UWA Business School ( email )

Crawley, Western Australia 6009
Australia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
24
Abstract Views
185
PlumX Metrics