The Impact of ERISA (Employment Retirement Income Security Act) on the Investment Policies of Private Pension Funds and Capital Market Efficiency

摘要

The study is designed to report on the effects ERISA has had on: (1) the attitudes and perceptions of those involved in the investment management of private pension funds concerning the major provisions of ERISA, and their assessment of the likely impact of ERISA in investment management; (2) the investment behavior of private pension funds; and (3) capital market efficiency. The study provides a detailed description of the position of private pension funds in the markets for fixed income securities and common stocks. It also shows the changes in portfolio mix between bonds and common stock that occurred in recent years, before and after ERISA. Chapter 1 presents analyses of data used in examination and results. Chapters 2 and 3 provide the results of attitudinal questionnaires sent to plan administrators and investment managers to evaluate such matters as the level of understanding of fiduciaries of the relevant provisions of ERISA. Chapter 4 is intended to determine whether the concentration that characterizes the equity investment has changed since the passage of ERISA. The objective of chapter 5 is to provide an analysis of the effects of trading imbalances on common stock prices and to identify any resulting capital market inefficiencies.