engleski

IMPACT OF PENSION FUNDS ON BUSINESS PERFORMANCE OF LARGE COMPANIES IN THE REPUBLIC OF CROATIA

The aim of this paper is to analyse the impact of four mandatory pension funds in the Republic of Croatia on the business performance of large companies in their portfolios measured by return on assets (ROA). To analyse the impact of pension funds, the authors studied the lists of their investments from 2015 to 2019 and calculated return on assets, asset turnover ratio, profit margin and funds’ ownership share in the listed companies. The data were used for panel analysis, which has shown that pension funds have an impact on the business performance of large companies in which they invest. The current paper adds to the literature dealing with the impact of pension funds on corporate governance of companies and examines it by means of panel analysis of their shares and financial indicators. The results of this research can be used by pension funds to rethink their investment strategies and make decisions that will ensure greater returns. Additionally, this study can serve as a basis for further research that could confirm these results or measure the impact of pension funds on the business performance of large companies by another financial indicator. Limitations of this study include a sample consisting of only mandatory pension funds for analysing their impact on business performance. Moreover, business performance can be measured by an alternative indicator. Therefore, future research could also include voluntary pension funds to investigate the impact of the ownership of pension funds on business performance of companies by using other performance indicators.

Pension Fund, Business Performance, Portfolio Management Style, Panel Data Model

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