A Proposed Framework of Corporate Governance and Investment Strategy Impacts on Occupational Pension Sustainability: the Moderating Effects of Risk Management
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Date
2018
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Journal ISSN
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Publisher
Penerbit Akademia Baru, University of Mara, Malaysia
Abstract
Recently, sustainability has emerged among major concerns in a broad range of fields.
Comparatively, little research attention has been paid to sustainability of occupation
pension (OP) scheme despite its significance on public finance. The widespread nature
of pension reforms triggered by occupational pension crisis has led to privatization of
management of pension funds among approaches of reforms. Grounded in
institutional and agency theories, this paper proposes a theoretical framework of the
influences of corporate governance and investment strategies on the sustainability of
OP and the moderating role of risk management. The framework focuses on the
Nigerian contributory pension scheme (CPS) which came into effect in 2004. Review of
extant literature indicates that with good corporate governance and optimal
investment strategies, the sustainability of Nigerian CPS would be enhanced.
Furthermore, the moderating effects of risk management were established based on
evidences from literature. The review has significant implication on the management
of CPS not only in terms of the stewardship roles entrusted with privately firms
(pension operators) managing the CPS fund, but also for the employees and other
stakeholders to reap the benefits of well-regulated CPS.
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Keywords
Sustainability, corporate governance, investment strategies, risk management