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.
Original language | English |
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Publication date | May 2024 |
Number of pages | 74 |
Publication status | Published - May 2024 |
Event | Pension Finance: Investment, Regulation, and Risk-Sharing - Copenhagen Business School, Frederiksberg, Denmark Duration: 11 Jun 2024 → 11 Jun 2024 https://www.nber.org/conferences/pension-finance-investment-regulation-and-risk-sharing-spring-2024 |
Conference
Conference | Pension Finance: Investment, Regulation, and Risk-Sharing |
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Location | Copenhagen Business School |
Country/Territory | Denmark |
City | Frederiksberg |
Period | 11/06/2024 → 11/06/2024 |
Internet address |
Keywords
- Pension funds
- Long-termism
- Firm productivity
- Equity