Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 715-746 |
| Number of pages | 32 |
| Journal | Accounting & Finance |
| Early online date | 21 Jun 2018 |
| DOIs | |
| Publication status | Published - Apr 2019 |
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When boards use related parties : Outsourcing and superannuation fund performance. / Liu, Kevin; Ooi, Elizabeth.
In: Accounting & Finance, 04.2019, p. 715-746.Research output: Contribution to journal › Article
TY - JOUR
T1 - When boards use related parties
T2 - Outsourcing and superannuation fund performance
AU - Liu, Kevin
AU - Ooi, Elizabeth
PY - 2019/4
Y1 - 2019/4
N2 - Superannuation funds heavily outsource key fund functions to service providers who play a crucial role in superannuation fund operations and affecting Australians’ retirement savings. We examine the impact of related party service provider usage and trustee‐director affiliation on investment performance. We find that for‐profit funds significantly underperform when using related party service providers. The underperformance is more severe when the board is controlled by more affiliated trustee‐directors and belongs to a vertically integrated conglomerate group. Our results raise concerns about whether recent regulatory reforms increasing trustee‐directors’ duties effectively address the conflicts of interest inherent in related party service provider arrangements.
AB - Superannuation funds heavily outsource key fund functions to service providers who play a crucial role in superannuation fund operations and affecting Australians’ retirement savings. We examine the impact of related party service provider usage and trustee‐director affiliation on investment performance. We find that for‐profit funds significantly underperform when using related party service providers. The underperformance is more severe when the board is controlled by more affiliated trustee‐directors and belongs to a vertically integrated conglomerate group. Our results raise concerns about whether recent regulatory reforms increasing trustee‐directors’ duties effectively address the conflicts of interest inherent in related party service provider arrangements.
U2 - 10.1111/acfi.12379
DO - 10.1111/acfi.12379
M3 - Article
SP - 715
EP - 746
JO - Accounting & Finance
JF - Accounting & Finance
SN - 0810-5391
ER -