SWITCH-OUT AND SWITCH-IN: WHAT MOTIVATES THE DECISION MAKERS IN ITALIAN OCCUPATIONAL PENSION FUNDS?

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Andrea Lippi ORCID logo

https://doi.org/10.22495/jgr_v5_i1_p5

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Abstract

To switch presumes two kinds of transactions carried out by the same person: on the one hand, the decision to exit an investment line (switch-out) and, on the other hand, the decision to enter into a new investment line (switch-in). What motivates the decision makers? This paper, considering a sample of Italian occupational pension funds, investigates the impact of short-term and long-term performance on the switch decision process and whether the same performance can lead investors to make opposite switch decisions. Some irrational behaviors are identified.

Keywords: Switch-in Decision, Switch-out Decision, Pension Funds

How to cite this paper: Lippi, A. (2016). Switch-out and switch-in: What motivates the decision makers in Italian occupational pension funds? Journal of Governance and Regulation, 5(1), 37-42. https://doi.org/10.22495/jgr_v5_i1_p5