Unveiling the Mediating Pathways in Indonesia Financial Institutions Pension Funds
DOI:
https://doi.org/10.47747/fmiic.v1i3.3573Abstract
This study aims to analyze the factors that affect the return on investment in the Financial Institution Pension Fund in Indonesia for the 2020–2024 period, with the premise that investment performance does not always increase along with the increase in assets under management and the growth of contribution funds. The study examines the influence of assets under management, contribution fund growth, and asset allocation on return on investment and examines whether asset allocation plays a role as a mediating variable. The approach used is quantitative with panel data regression and specification selection through comparative testing that produces a fixed effect model. Data processing was carried out using the statistical software Econometric Views 13 and mediation testing using the Sobel test on the path coefficient. The results of the study show that assets under management have a negative and significant effect on return on investment, the growth of contribution funds has a negative and significant effect on return on investment, while asset allocation has a positive and significant effect on return on investment. The mediation test confirmed that asset allocation did not bridge the influence of assets under management or the growth of contribution funds on return on investment, so the two variables worked mainly through direct influence. Practical recommendations include strengthening cash management, accelerating the fund placement process, consistent portfolio rebalancing, setting measurable risk limits, and developing research with liquidity indicators, transaction costs, risk size, and macroeconomic factors.
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