Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 5, 2022 erstellt
Beschreibung:
The study sought to investigate the effect of corporate governance and investment strategy on the financial performance of pension schemes in Kenya. It helped explore the causal relationship among these factors and shed light on the nature of the relationship from a developing country's perspective. Currently, there is little insight relating the financial performance of pension schemes to these variables as multiple factors in the country. Moreover, there is lack of consensus on why similar corporate governance practices in the developed world produced conflicting and sometimes inconclusive results. Most studies did not consider the interaction between intervening and governance structures on pension performance. The studies did not use the multi-equation approach to assess the influence of multiple factors on pension performance. The study sought to address the following key research question: What is the effect of corporate governance and investment strategy on the financial performance of pension funds in Kenya? In particular, the study examined the following specific research questions: i) What is the effect of corporate governance on the financial performance of pension funds in Kenya? ii) Does investment strategy mediate the relationship between corporate governance and financial performance of pension funds in Kenya?; iii) How does the joint effect of corporate governance and investment strategy affect the financial performance of pension funds? The effect of these factors on the financial performance of pension funds was investigated using qualitative and quantitative research designs. It entailed the subset correlational, descriptive, diagnostic, and explanatory research designs. Quantitative data on annual returns on pension funds spanning 2012 to 2020 was used. In addition, qualitative data on governance indicators and investment strategies were utilized. Return on investments (ROI) and Return on Assets (ROA) were used as indicators for pension fund performance. Primary data comprising corporate governance and investment strategy indices were obtained after qualitative data analysis using survey questionnaires from the pension schemes. The study's main conclusion is that the financial performance of pension funds is influenced by the effects of both corporate governance and investment strategy. The study's first hypothesis showed that corporate governance had a significant effect on the lgROI of pension funds. The governance indicators, however, differed in their contribution to predicting the lgROI of pension funds. The second hypothesis of the research revealed that investment strategy had a significant mediating effect on the relationship between governance and pension performance. The third hypothesis of the study established that the joint effect of corporate governance and investment strategy on the lgROI of pension funds was significant though the individual contribution of each variable varied. Only Stakeholders' interests in board decisions and IS index show a statistically significant positive effect on the lgROI of pension funds, while Board Responsibilities showed a statistically significant negative effect. Board structure and composition, Shareholders Rights, Disclosure and transparency, Commitment to Corporate governance, and the Role of stakeholders showed a positive but statistically insignificant effect on the lgROI of pension funds. The findings imply that pension fund managers, investment managers, and policymakers should consider the corporate governance framework in pension funds' management and investment decisions as they are bound to affect their financial performance. The results, too, provide empirical support to the MPT, the APT, the ST, and the CAPM