DP17639 Do Pension Fund Investments Make a Difference? Effects on Firm Productivity
We construct a comprehensive ownership dataset merged with the Danish registers to explore firms' productivity responses to a pension fund investment. Our analysis demonstrates that pension funds raise firms' productivity by investing in their equity. These results are robust to the consideration of selection issues and a large set of refinements, which show that the effects are larger for unlisted firms. We also find evidence to suggest that the increase in productivity tends to be larger the longer the duration and the larger the equity investment by pension funds.