Does Long-term Patient Capital Matter? The Impact of Pension Fund Investments on Firm Productivity

Publikation: KonferencebidragPaperForskningpeer review

Abstract

The digital and green transitions require long-horizon investments on an unprecedented scale. Pension funds, with their long-term liabilities, are natural providers of such investments. In this paper, we construct a comprehensive dataset that integrates firm ownership information with Danish registers, enabling us to empirically document a significant relationship between pension fund investment and firm productivity. Following such an investment, we observe a substantial increase in firm productivity, averaging between 3% and 5%. This finding is robust and persists across various methodological approaches, including accounting for selection issues and a broad array of refinements, such as controlling for the types of co-investors. Our results suggest that public policies aimed at stimulating pension funding and encouraging pension fund equity holdings could enhance the productivity of the economy.
OriginalsprogEngelsk
Publikationsdatomaj 2024
Antal sider74
StatusUdgivet - maj 2024
BegivenhedPension Finance: Investment, Regulation, and Risk-Sharing - Copenhagen Business School, Frederiksberg, Danmark
Varighed: 11 jun. 202411 jun. 2024
https://www.nber.org/conferences/pension-finance-investment-regulation-and-risk-sharing-spring-2024

Konference

KonferencePension Finance: Investment, Regulation, and Risk-Sharing
LokationCopenhagen Business School
Land/OmrådeDanmark
ByFrederiksberg
Periode11/06/202411/06/2024
Internetadresse

Emneord

  • Pension funds
  • Long-termism
  • Firm productivity
  • Equity

Citationsformater