Explaining pension fund product and governance disclosure in Australia

Fund disclosure is an important communication tool between trustees and fund members for product comparison and credibility verification. We examine what drives Australian superannuation funds to disclose their funds product information to the market. Our research derives a model that shows how the proprietary costs of disclosure, market competition, valuation benefits, and fund governance drive the disclosure of information about trustee, investment agents, fees, and overall practices. The research findings indicate that market competition has a significant positive influence on voluntary disclosure, while disclosure costs are negatively related to disclosure. The disclosure practices of various fund types and governance models are also significant factors, as is the multi-layer agency relationship in the superannuation funds industry.