DETERMINANTS OF FINANCIAL PERFORMANCE OF PENSION FUND ADMINISTRATORS IN NIGERIA

Abstract

Abstract

This research studies the impact of fund expenditure and fund size on the financial performance of pension fund administrators in Nigeria. It also aims to identify the difference in performance between the sets of funds, which are based on multi fund structure classification system. This study uses 19 PFAs firm-year panel data for a 6-year period ranging from 2018 to 2023 to analyse the findings. Analysis of variance and panel regression analysis are employed to analyse the relationship between the sets of factors and the financial performance of each of them. Results revealed that there are significant differences in performance between the set of funds. The findings established the fact that fund expenses significantly influence the financial performance of funds, while fund size have no significant impact on the financial performance of funds. The findings provide evidence on the performance of the different categories of fund, which will help the contributor(s) to decide on whether to stay on their default fund or move to another fund. Furthermore, the findings of this study should be of interest to managers in minimizing expenses and proper utilization of assets to improve company’s financial performance.