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hal.structure.identifier
dc.contributor.authorAtanasova, Christina*
hal.structure.identifier
dc.contributor.authorChemla, Gilles*
dc.date.accessioned2011-01-24T08:47:22Z
dc.date.available2011-01-24T08:47:22Z
dc.date.issued2010
dc.identifier.urihttps://basepub.dauphine.fr/handle/123456789/5523
dc.subjectInstitutional investmenten
dc.subjectdefined benefit pension plansen
dc.subjectfamiliarity biasen
dc.subject.ddc332en
dc.subject.classificationjelG12en
dc.subject.classificationjelG23en
dc.subject.classificationjelG11en
dc.titleFamiliarity Breeds Institutional Investment: Evidence from US Defined Benefit Pension Plansen
dc.typeDocument de travail / Working paper
dc.description.abstractenThis paper provides new evidence that familiarity bias affects the portfolios of institutional investors. Using a sample of large US defined-benefit pension plans for the period 1992 to 2002, we show that the corporate focus of the sponsoring firm has an impact on the investment policy of the pension plan. Pension plans sponsored by firms with a high proportion of foreign sales are more likely to invest in international assets, plans sponsored by firms that are active in research and development are more likely to invest in private equity, and plans with sponsors that have more fixed assets are more likely to invest in real estate and mortgages. Comparing to existing explanations of why plans tilt their portfolios towards the sponsor’s focus, familiarity bias is the most compelling one. The worse performance of pension plans with such portfolio allocation bias is consistent with pension managers being over-confident about familiar assets.en
dc.publisher.nameUniversité Paris-Dauphineen
dc.publisher.cityParisen
dc.identifier.citationpages31en
dc.relation.ispartofseriestitleCahiers de la Chaire Finance et Développement Durableen
dc.relation.ispartofseriesnumber31en
dc.description.sponsorshipprivateouien
dc.subject.ddclabelEconomie financièreen
hal.author.functionaut
hal.author.functionaut


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