ORCID

0009-0008-7361-2653

Keywords

Public pension funds, Asset allocation, Mutual funds, Proxy voting, Agency conflicts, Political ideology

Abstract

This dissertation examines how political influence and ideology shape the investment and governance decisions of institutional investors. My first essay studies the effects of political interference on public pension plan asset allocation. Plans facing investment restrictions shift away from low-cost traditional assets toward higher-fee, lower-performing alternative assets. While politicians advocating these restrictions receive increased media attention, state economies do not benefit. These findings underscore how political incentives create agency problems that adversely affect investment decisions and outcomes.

The second essay examines whether differences in political ideology between asset managers and investors give rise to conflicts of interest. Mutual fund institutions headquartered in Democratic states offer more ESG funds, participate more in climate-related consortia, sponsor more shareholder proposals, and are more likely to vote in favor of ESG proposals. These patterns vary across politically salient periods and are not driven by external political influence or the largest asset managers. The results suggest that asset managers exhibit political preferences aligned with those of the local populace. Given the geographic clustering of the money management industry, such differences may create socially driven conflicts in asset management.

Completion Date

2026

Semester

Spring

Committee Chair

Wang, Qinghai; Mullally, Kevin

Degree

Doctor of Philosophy (Ph.D.)

College

College of Business

Department

Finance

Document Type

Dissertation/Thesis

Identifier

DP0053192

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