CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA
The pension sector plays a crucial role in ensuring the well-being and financial stability of retirees. Simultaneously, the capacity of pension fund administrators to uphold their financial stability has emerged as a significant global issue. Consequently, this research scrutinized the factors (spe...
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| Format: | Article |
| Language: | English |
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Kwara State University, Malete Nigeria
2024-10-01
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| Series: | Malete Journal of Accounting and Finance |
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| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/143 |
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| author | Adeoye Amuda Afolabi Mubaraq Sanni Muritala Olatunji Oladele Yusuf Alabi Olumoh Muhammed Kamaldeen Usman |
| author_facet | Adeoye Amuda Afolabi Mubaraq Sanni Muritala Olatunji Oladele Yusuf Alabi Olumoh Muhammed Kamaldeen Usman |
| author_sort | Adeoye Amuda Afolabi |
| collection | DOAJ |
| description |
The pension sector plays a crucial role in ensuring the well-being and financial stability of retirees.
Simultaneously, the capacity of pension fund administrators to uphold their financial stability has
emerged as a significant global issue. Consequently, this research scrutinized the factors
(specifically, corporate governance mechanisms and investment policy) influencing the financial
sustainability of Nigerian pension fund administrators. Primary data was gathered through a selfadministered
questionnaire following a cross-sectional research design. The study encompassed the
19 pension fund administrators in Nigeria, with a purposively selected sample size of 228. Data
analysis was conducted using the PLS-SEM technique. The results revealed that corporate
governance mechanisms (β = 0.187, t = 1.046, p = 0.154) and investment policy (β=0.367; t=2.598;
and p=0.240) exhibit negligible impacts on the financial sustainability of pension fund managers in
Nigeria at 5% level of significance. Consequently, it can be inferred that corporate governance
mechanisms and investment policy do not exert a significant influence on the financial sustainability
of authorized pension fund administrators in Nigeria. The study recommended that pension fund
administrators in Nigeria should regularly assess and update corporate governance procedures to
align with industry best practices, implement robust oversight mechanisms to ensure transparency
and accountability in decision-making processes, and enhance board training and development to
improve the effectiveness of governance structures; and periodically review the investment policy to
adapt to changing market conditions and emerging risks, diversify investment portfolios to spread
risk and enhance potential returns, and utilize advanced risk management tools to identify and
mitigate potential investment risks.
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| format | Article |
| id | doaj-art-af05dfeeafbd4b30a578bda098d6b3dc |
| institution | Kabale University |
| issn | 2735-9603 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Kwara State University, Malete Nigeria |
| record_format | Article |
| series | Malete Journal of Accounting and Finance |
| spelling | doaj-art-af05dfeeafbd4b30a578bda098d6b3dc2025-02-11T23:08:14ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032024-10-0142CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIAAdeoye Amuda Afolabi0Mubaraq Sanni1Muritala Olatunji Oladele2Yusuf Alabi Olumoh3Muhammed Kamaldeen Usman4Kwara State University, MaleteKwara State University, MaleteKwara State University, MaleteKwara State University, MaleteKwara State University, Malete The pension sector plays a crucial role in ensuring the well-being and financial stability of retirees. Simultaneously, the capacity of pension fund administrators to uphold their financial stability has emerged as a significant global issue. Consequently, this research scrutinized the factors (specifically, corporate governance mechanisms and investment policy) influencing the financial sustainability of Nigerian pension fund administrators. Primary data was gathered through a selfadministered questionnaire following a cross-sectional research design. The study encompassed the 19 pension fund administrators in Nigeria, with a purposively selected sample size of 228. Data analysis was conducted using the PLS-SEM technique. The results revealed that corporate governance mechanisms (β = 0.187, t = 1.046, p = 0.154) and investment policy (β=0.367; t=2.598; and p=0.240) exhibit negligible impacts on the financial sustainability of pension fund managers in Nigeria at 5% level of significance. Consequently, it can be inferred that corporate governance mechanisms and investment policy do not exert a significant influence on the financial sustainability of authorized pension fund administrators in Nigeria. The study recommended that pension fund administrators in Nigeria should regularly assess and update corporate governance procedures to align with industry best practices, implement robust oversight mechanisms to ensure transparency and accountability in decision-making processes, and enhance board training and development to improve the effectiveness of governance structures; and periodically review the investment policy to adapt to changing market conditions and emerging risks, diversify investment portfolios to spread risk and enhance potential returns, and utilize advanced risk management tools to identify and mitigate potential investment risks. https://majaf.com.ng/index.php/majaf/article/view/143Corporate governance mechanismsinvestment policyfinancial sustainabilityPension Fund Administrators |
| spellingShingle | Adeoye Amuda Afolabi Mubaraq Sanni Muritala Olatunji Oladele Yusuf Alabi Olumoh Muhammed Kamaldeen Usman CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA Malete Journal of Accounting and Finance Corporate governance mechanisms investment policy financial sustainability Pension Fund Administrators |
| title | CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA |
| title_full | CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA |
| title_fullStr | CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA |
| title_full_unstemmed | CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA |
| title_short | CORPORATE GOVERNANCE MECHANISMS, INVESTMENT POLICY AND FINANCIAL SUSTAINABILITY OF PENSION FUND ADMINISTRATORS IN NIGERIA |
| title_sort | corporate governance mechanisms investment policy and financial sustainability of pension fund administrators in nigeria |
| topic | Corporate governance mechanisms investment policy financial sustainability Pension Fund Administrators |
| url | https://majaf.com.ng/index.php/majaf/article/view/143 |
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