Abstract
This paper tries to examine the efficiency of private pension companies in Turkey using Data Envelopment Analysis (DEA) covering the year 2008–2012. Total stockholders’ equity and operating expenses of the pension companies have been taken as input variables whereas investment income and fund administration charges were considered as output variables. The findings imply that there are technical efficiency gains in some private pension companies in Turkey. Though there is no continuous trend towards an improvement in technical efficiency, important changes over time have been witnessed. This may be due to the immaturity of the private pension industry given that it has launched operations 10 years ago. Note ought to be taken that management of the private pension scheme is a complex undertaking and in some instances, really chaotic. This is premised on the fact that some end up missing out on the true value of the scheme and that they even lose trust of the same. This paper thus explores the efficiency imbedded within private pension companies using Data Envelopment Analysis.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Barney J (1991) Firm resources and sustained competitive advantage. J Manag 17:99–120
Barrientos A, Boussofiane A (2005) How efficient are pension funds managers in Chile? Revista de Economia Contemporânea 9(2):289–311
Barros CP, Garcia MTM (2007) Analyzing the performance of pension funds industry with a stochastic cost frontier: a Portuguese case study. Geneva Pap Insur Theory Pract 32:190–210, Switzerland
Barros C, Pestan FG, Romero C (2008) Technical efficiency and heterogeneity of Argentina pension funds. Working papers, Technical University of Lisbon, Portugal
Caves R, Porter ME (1977) From entry barriers to mobility barriers: conjectural decisions and contrived deterrence to new competition. Q J Econ 91:241–261
Central Bank of Turkey (2011) Financial stability report. Central bank of Turkey, Turkey. http://www.tcmb.gov.tr/wps/wcm/connect/tcmb+en/tcmb+en/main+menu/publications/reports/financial+stability+report
Chansarn S (2005) Efficiency in Thai financial sector after the financial crisis. University Library of Munich, Munich, Germany
Charnes A, Cooper W, Rhodes GE (1978) Measuring the efficiency of decision making units. Eur J Oper Res 2(6):429–444
Coelli TJ, Rao DSP, O’Donnell CJ, Battese GE (2005) An introduction to efficiency and productivity analysis, 2nd edn. Springer, New York
Dalkılıç N, Ada AA (2014) Efficiencies of life/pension insurance industry in Turkey: an application of data envelopment analysis. J App Finance Bank 4(1):181–191
Davis PE (2005) The role of pension funds as institutional investors in emerging markets. Brunel University and NIESR, London
Farrell MJ (1957) The measurement of productive efficiency. J R Stat Soc Ser A 120:253–290. G Turkey
KPMG Turkey (2013) Turkish pension system amendments. Yetkin Yeminli Mali Müşavirlik A.Ş, Istanbul-Turkey. http://www.kpmgvergi.com/PDF/Yayinlar/KPMG-Global-Yayinlar/Turkish-Pension-System-Amendments.pdf
Kurtaran A, Karakaya A, Dağlı H (2013) Improvement of private pension system in Turkey and measurement of its efficiency with DEA. Int J Econ Finance 5(11):163–173
Musalem AR, Pasquini R (2012) Private pension systems: cross-country investment performance. Working paper, Social protection and labor world Bank, No. 1214
Njuguna AG, Arnold C (2010) Improving the financial efficiency of pension funds in Kenya. Nelson Mandela Metropolitan University, Port Elizabeth
Olgaç K (2006) Private Pension System of Turkey, discussion on the development of Private Pension System of Turkey. OECD/IOPS Global Forum on Private Pensions, Istanbul
Organization for Economic Co-operation and Development (OECD) (2013) Pension markets in focus. OECD, Paris, France. http://www.oecd.org/pensions/PensionMarketsInFocus2013.pdf
Özgür Ö, Yalçın C (2013) The effect of private pension reforms on domestic saving rates in developing countries: cross-country empirical evidence. CBT research notes in economics. Central Bank of Turkey, Ankara
Porter ME (1979) The structure within industries and companies’ performance. Rev Econ Stat 61:214–227
Rumelt R (1991) How much does industry matter? Strateg Manag J 12(2):167–185
Ruzgar B, Akkaya A (2009) Examining efficiencies of private pension companies in Turkey with data envelopment analysis. In: IWW2009-proceeding of the IVth international workshop on applications of wavelets to real world problems, At Kocaeli, Turkey
Wernerfelt B (1984) A resource-based view of the firm. Strateg Manag J 5(2):171–180
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this paper
Cite this paper
Ali, A.S. (2016). Efficiency of Private Pension Companies in Turkey Using Data Envelopment Analysis (DEA). In: Erçetin, Ş. (eds) Chaos, Complexity and Leadership 2014. Springer Proceedings in Complexity. Springer, Cham. https://doi.org/10.1007/978-3-319-18693-1_45
Download citation
DOI: https://doi.org/10.1007/978-3-319-18693-1_45
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-18692-4
Online ISBN: 978-3-319-18693-1
eBook Packages: Business and ManagementBusiness and Management (R0)