Working Paper: CEPR ID: DP17639
Authors: Roel Beetsma; Svend E. Hougaard Jensen; David Pinkus; Dario Pozzoli
Abstract: We construct a comprehensive ownership dataset merged with the Danish registers to explore firms' productivity responses to a pension fund investment. Our analysis demonstrates that pension funds raise firms' productivity by investing in their equity. These results are robust to the consideration of selection issues and a large set of refinements, which show that the effects are larger for unlisted firms. We also find evidence to suggest that the increase in productivity tends to be larger the longer the duration and the larger the equity investment by pension funds.
Keywords: pension funds
JEL Codes: D24; E23; G3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| size of pension fund investment (G23) | productivity increases (O49) |
| duration of pension fund investment (G23) | productivity increase (O49) |
| pension fund investments (G23) | firm productivity (D22) |