EFFECT OF PENSION FUND CHARACTERISTICS ON FINANCIAL PERFORMANCE OF PENSION FUND ADMINISTRATORS IN NIGERIA

Abstract

The divergent opinion on the determinants of the financial performance of pension funds administrators has been an ongoing issue. Academic scholar’s overtime has been groping with what factors drive the financial performance of pension funds administrators which still remains unestablished. Hence, this study determines the effect of pension fund characteristics on the financial performance pension funds administrators in Nigeria .The study employed an ex post factor research design while the population of the study is the 21 pension fund administrators operating in Nigeria and a sample of 6 PFAs were conveniently selected after filter was applied. The hypotheses of the study were tested with correlation and standard multiple linear regression analyses. Correlation was used to measure the association between the variables while standard multiple regression analysis was used to evaluate the relationship between the variables. Statistical Package for Social Sciences (SPSS) version 22 was utilized for the data analysis. This study revealed that corporate age, corporate revenue and investment growth have significant effects on pension fund administrators’ financial performance in Nigeria. It was found further that corporate expenditure has a significant negative effect on the financial performance of pension fund administrators in Nigeria. The study concluded that corporate age, corporate expenditure, corporate revenue and investment growth have significant effects on pension fund administrators’ financial performance in Nigeria. Judicious allocation of resources for short-term and long-term investments was recommended for management consideration.