Pension Fund Equity Investment and Firm Productivity

Roel Beetsma, Svend Erik Hougaard Jensen, David Pinkus, and Dario Pozzoli

♦ This paper examines how domestic pension fund equity investment relates to productivity in unlisted firms, using detailed ownership data linked to Danish administrative registers. Pension fund entry is associated with a 3–5% higher level of productivity in the years following entry. The association is stronger when pension funds hold larger stakes, invest for longer, and are closer in the ownership chain. Pension fund entry is also associated with a subsequent increase in the number of a firm’s additional investors. We find no investment productivity association for listed firms.

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