This study examines the current legislature and best practice corporate governance for institutional investors in Germany and the United States. Differences in investment regulation, compliance and disclosure requirements, as well as expense and tax schemes are identified for insurance companies and the pension fund industry. Based on current academic literature, hypotheses about the impact of different regulatory regimes are derived and tested empirically in a comparison between Germany and the United States over the last five years. Differences in asset allocation between the two countries are determined for both industries. It is shown that the strict quantitative regulation of asset allocation in Germany has no negative impact on institutional investors’ performance, yet it reduces the realized risk measured through depreciation. A principal component regression reveals that asset allocation constitutes a relevant indicator for depreciation and performance in Germany. It can be inferred that the investment regulation in Germany poses little disadvantages for investors while it provides a significant risk reduction. This conclusion is confirmed by practitioners from the pension fund industry in Germany.
English summary: Founded by Emil Meynen, edited by Andreas Bittmann in Cooperation with: the German Society for Geography, Austrian IGU-National Committee, and the Swiss Association for Geography/ Association Suisse de G�ographie. For over sixty years and in the 31st edition from Franz Steiner Publishers, the Geographic Pocketbook proves itself as a reference work: the clear list of geographic institutions, administrative authorities, organization and geographers in Germany, Austria and Switzerland makes the handbook indispensible for everything concerning geography. It has been updated and furnished with useful register and serves as a compact and reliable source. German description: Begruendet von Emil Meynen, herausgegeben von Andreas Dittmann im Einvernehmen mit: Deutsche Gesellschaft fuer Geographie, �sterreichisches IGU-Nationalkomitee, Verband Geographie Schweiz / Association Suisse de G�ographie Seit ueber 60 Jahren und in der 31. Ausgabe im Franz Steiner Verlag bew�hrt sich das Geographische Taschenbuch als Nachschlagewerk: die uebersichtliche Auflistung geographischer Institutionen, Beh�rden, Organisationen und Geographen und Geographinnen in Deutschland, �sterreich und der Schweiz machen das Handbuch unentbehrlich fuer alle, die sich mit der Geographie befassen. Wieder aktualisiert und mit nuetzlichen Registern versehen, ist es eine kompakte und zuverl�ssige Quelle.
This study examines the current legislature and best practice corporate governance for institutional investors in Germany and the United States. Differences in investment regulation, compliance and disclosure requirements, as well as expense and tax schemes are identified for insurance companies and the pension fund industry. Based on current academic literature, hypotheses about the impact of different regulatory regimes are derived and tested empirically in a comparison between Germany and the United States over the last five years. Differences in asset allocation between the two countries are determined for both industries. It is shown that the strict quantitative regulation of asset allocation in Germany has no negative impact on institutional investors’ performance, yet it reduces the realized risk measured through depreciation. A principal component regression reveals that asset allocation constitutes a relevant indicator for depreciation and performance in Germany. It can be inferred that the investment regulation in Germany poses little disadvantages for investors while it provides a significant risk reduction. This conclusion is confirmed by practitioners from the pension fund industry in Germany.
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