Will investors change their superannuation fund given the choice?
Article first published online: 9 OCT 2008
Accounting & Finance
Volume 47, Issue 2, pages 267–283, June 2007
How to Cite
Fry, T., Heaney, R. and McKeown, W. (2007), Will investors change their superannuation fund given the choice?. Accounting & Finance, 47: 267–283. doi: 10.1111/j.1467-629X.2006.00203.x
- Issue published online: 9 OCT 2008
- Article first published online: 9 OCT 2008
- Received 11 April 2006; accepted 31 May 2006 by Robert Faff (Editor)
- Cited By
- Choice of fund;
- Prospect theory;
A large number of Australian investors have been granted the right to choose where their superannuation fund contributions will be invested, but it is difficult to ascertain whether investors will exercise this choice. Although expected-utility-maximizing investors might tend to change their fund once given the choice, loss averse investors would favour the status quo. Using a survey of over 1600 Australian investors, conducted by FinaMetrica in early 2005, we find support for inertia (status quo) in our sample suggesting that, with respect to superannuation choice, individual Australian investors are loss averse.