Efficiency analysis of pri̇vate pension companies in turkey

Private pension scheme in the Turkish market has been growing with the addition of new participants, contributors and companies, since becoming fully operational in 2003. The growth of this industry can be seen as a significant change for all beneficiaries. An important question that needs to be raised is whether such growth is a promising one. In this study, we investigate the efficiency of private pension companies that were operational in Turkey between the years of 2007 and 2017 by implementing CCR model of Data Envelopment Analysis (DEA). To be used in the analysis, three input variables (technical costs, total net asset value of fund and number of participants) and one output variable (technical income) are determined. For the selection of the input and output variables, a correlation analysis was carried out between the variables, and the variables that would reflect the optimal market efficiency were chosen. Finally, the changes observed in the efficiency of private pension companies over the ten-year period are reported, and suggestions are offered to raise efficiency.