A performance-based assessment of Turkish private pension funds: efficiency, scale economies, and competitiveness
GENEVA PAPERS ON RISK AND INSURANCE-ISSUES AND PRACTICE, vol.51, no.2, pp.468-502, 2026 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 51 Issue: 2
- Publication Date: 2026
- Doi Number: 10.1057/s41288-025-00375-y
- Journal Name: GENEVA PAPERS ON RISK AND INSURANCE-ISSUES AND PRACTICE
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM, EconLit
- Page Numbers: pp.468-502
- Keywords: Competition, Efficiency, Market structure, Panzar–Rosse model, Private pension system
- Istanbul University Affiliated: Yes
Abstract
This study evaluates the performance of private pension providers via three dimensions-efficiency, economies of scale, and competitive structure-of the private pension sector in T & uuml;rkiye using a multi-method approach. The study employs a three-stage approach: data envelopment analysis to measure technical efficiency, Tobit regression to identify determinants, and the Panzar-Rosse model and Herfindahl-Hirschman Index to assess market structure. The analysis utilises firm-level panel data from 21 pension companies over 2013-2022. The empirical findings reveal that larger firm size is associated with improved efficiency, although diminishing returns emerge at higher asset scales. Financial profitability enhances technical efficiency, whereas a higher equity ratio and investment in both interest-bearing and interest-free financial instruments reduce it. The results indicate limited competition in a monopolistic or collusive market structure, which, paradoxically, is linked to improved technical efficiency by allowing managers to better exploit strategic advantages.