Flow-Performance Relation for DC and Non-DC Assets

Multinomial Logit for Entry and Exit Decisions

This table summarizes a multinomial logit specification for fund entry and exit decisions. The exit (entry) indicator variable equals one if funds have nonmissing (missing) DC assets in the past year and missing (nonmissing) DC assets in the current year. The base group consists of all funds in the sample that have nonmissing DC assets for two consecutive years. Standard errors are reported in parentheses and adjusted for clustering at the fund level. The regressions also include time fixed effects. * , ** , and *** denote estimates that are statistically different from zero at the 10%, 5%, and 1% significance levels.

Entry Performance

(0.203) Log Fund Size

(0.063) Log Family Size

(0.057) Log Age

(2.906) Style Flow

set if the fund experiences superior prior performance. These selection effects likely attenuate the flow-performance relation for DC assets in our base-case specifications, and likely increase the sensitivity of DC flows to performance.