DETERMINANTS OF FINANCIAL SUSTAINABILITY AND GROWTH: AN ANALYSIS OF TURKISH PENSION FUNDS

The purpose of the study is to investigate the relationship between pension funds' sustainability and firm-level factors (Size, Age, Contribution level, EBIT, Board Competency, Board Size, Operational Risk, Admin Expenses, and Effective Tax Rates). The study helps to know the factors to support the enormous asset holding the financial sector of Turkey. The dynamic panel data model technique was used to determine the core micro factors determining pension funds' sustenance. Panel data of fifteen pension companies from 2005-2017 was used for Analysis. The data analysis suggests that financial sustainability, size and age of the firm, contributions, income, and board competency have a significant and positive effect on financial sustainability. In contrast, the board size, operational risk, operating and administrative expense, effective tax rate, and financial crisis of 2008 negatively affect the pension fund company's financial sustainability. The approach used in the paper could be of practical benefit to the Capital Market Board and Finance Ministry of Turkey in their decision making regarding pension fund management and core determinants behind it.