Corporate Governance Concerns on Pension Funds
|Author:||Ing. Andrea Součková, PhD|
|Year:||2003 - summer|
|Leaders:|| † prof. Ing. Milan Sojka CSc.
|Work type:|| Dissertations
|Awards and prizes:|
|Abstract:||The aim of this dissertation "Corporate Governance Concerns on Pension Funds" is to analyse the principles of coporate governance, its importance for resolving the issue of agency, and to verify the following hypothesis: "A good system of corporate governance leads to better performance and higher returns on pension funds".
The dissertation is divided into four parts and 12 chapters - the first six chapters explain the theoretical and methodical resources. The next six chapters deal with practical application in the area of pension funds.
The theoretical part drawns on "new institutional economics" and its view on "firm theory". It explains agency, the principal-agent issue, and the internal shareholders governance system. Principals (shareholders) have to create an effective corporate governance system to motivate agents (managers) for fulfilling shareholders` aims with respect to the behavioural presumptions of "constract man" (bounded rationality, self-interest, dignity and self and social regard). A well-designed corporate governance system is also useful for preventing fraud and embezzlement.
In the practival part of the paper, the reasons for the fgrowing importance of pension funds for resolving the demographic problems of developed countries are explained as well as the significance of pension funds as institutional investors for increasing the competitiveness of the economy. The increased significance of corporate governance as an institution of investors trust is also presented - especially for households.
The theory has been applied to the entire group of pension funds active in the Czech Republic as of 31 December 2002 (13 in all). The performance of individual pension funds has been compared to the level of coporate governance practice. The hypothesis mentioned in the introduction has not been confirmed. The conclusion is discussed within the broader context of the Czech institutional framework.
The benefits and gains from this dissertation include application of institutional theory to a concrete real case study and analysis of the present situation and development of the dissertation in a European and global context.
|Downloadable:|| Dissertation Thesis - Součková