Performance Evaluations of Defined Contribution Plans by Regulators
Abstract
ABSTRACT This paper examines the effect of public evaluations of superannuation plan performance by regulators. We find evidence that members switch capital away from plans receiving failing evaluations, with the ratio of net benefit flows to plan assets declining by 9 percentage points ($272 million based on the average plan). The effect concentrates in plans with more passive members and in Industry and Retail plans, where members arguably have fewer barriers to exit. There is minimal evidence that member returns are improved by switching. This study provides evidence consistent with behavioural justifications for the regulators' intervention in the superannuation industry.
Fields of Study & Subjects
Auditing
Earnings Management
Governance
Corporate Finance and Governance
Accounting and Organizational Management
Publication details
- Journal / source
- Accounting and Finance
- Volume
- 66
- Issue
- 2
- Pages
- 1145–1165
- Publication date
- 1 January 2026
- Language
- EN