Does Smoothing in Pension Accounting Encourage Equity Investment in Corporate Pension Plans? Evidence from the U.K.

2008 ◽  
Author(s):  
Shamin D. Mashruwala
Keyword(s):  
Pension Plans ◽  
Pension Accounting ◽  
Equity Investment ◽  
Corporate Pension

scholarly journals Pension Accounting: The Changing Landscape Of Corporate Pension Benefits

2011 ◽  
Vol 9 (10) ◽  
pp. 27
Author(s):  
Terrye A. Stinson ◽  
J. David Ashby ◽  
Kimberly M. Shirey
Keyword(s):  
Pension Plans ◽  
Defined Benefit ◽  
Font Size ◽  
Pension Accounting ◽  
Generally Accepted Accounting Principles ◽  
Fortune 100 ◽  
Defined Benefit Plans ◽  
Corporate Pension ◽  
Pension Benefits ◽  
Pension Liabilities

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 36.1pt 0pt 0.5in; text-align: justify; mso-pagination: none;" class="MsoTitle"><span style="font-family: Times New Roman;"><span style="color: black; font-size: 10pt; font-weight: normal; mso-themecolor: text1; mso-bidi-font-weight: bold;">This paper</span><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><strong> </strong></span><span style="color: black; font-size: 10pt; font-weight: normal; mso-themecolor: text1; mso-bidi-font-weight: bold;">discusses recent changes in the generally accepted accounting principles related to accounting for defined benefit pension plans. SFAS 158 imposes new rules related to calculating net pension assets or liabilities and increases the likelihood that companies may report net pension liabilities. This paper looks at a sample of Fortune 100 companies to determine the effect of implementing SFAS 158 on the reported funding status for defined benefit plans, and then tracks the reported pension status from 2005 through 2009. Contrary to expected results, the funding status did not deteriorate following implementation of SFAS 158. The ensuing economic meltdown in 2008 and 2009, however, resulted in more companies reporting pension liabilities.</span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

scholarly journals Pension Accounting: Funding Costs And Liabilities Of Corporate Pension Plans

2011 ◽  
Vol 8 (2) ◽  
pp. 68
Author(s):  
Fawzi G. Dimian ◽  
Linda L. Kahlbaugh
Keyword(s):  
Statistical Analysis ◽  
Pension Plan ◽  
Pension Plans ◽  
Small Sample ◽  
Sample Sizes ◽  
Pension Accounting ◽  
Net Worth ◽  
Corporate Pension ◽  
Small Sample Sizes

Overall, pension plan assets analyzed in this study appear strong. They have excellent overall funding and unfunded vested liabilities would require less time to fund currently than in 1978. Pension expense per employee have been increasing, but at very nominal rates. And although the companies with the highest profits may not be the companies with the highest pension expenses, average pension expenses for most categories decreased. Currently unfunded vested liabilities are low relative to both pre-tax profits and net worth. Again, a number of points should be kept in mind when looking at these analysis and trends. Industry categories had small sample sizes. The sample sizes increase when companies are lumped into ranking categories making the data more representative. The overall trends include sample sizes of approximately 90, an acceptable number for statistical analysis. Also, some of the trends could be clouded by definitions of assets, liabilities, and income which differ from the 1978 study. However, after examining basic similarities between the studies and noting the strength of certain trends, the above mentioned conclusions appear warranted.

scholarly journals Corporate pension plans and investment choices: Bargaining or conforming?

2018 ◽  
Vol 50 ◽  
pp. 519-537 ◽  
Author(s):  
Meryem Duygun ◽  
Bihong Huang ◽  
Xiaolin Qian ◽  
Lewis H.K. Tam
Keyword(s):  
Pension Plans ◽  
Corporate Pension ◽  
Investment Choices

Financing Constraints and the Cost of Capital: Evidence from the Funding of Corporate Pension Plans

2011 ◽  
Vol 25 (3) ◽  
pp. 868-912 ◽  
Author(s):  
John L. Campbell ◽  
Dan S. Dhaliwal ◽  
William C. Schwartz
Keyword(s):  
Cost Of Capital ◽  
Pension Plans ◽  
Financing Constraints ◽  
Corporate Pension ◽  
The Cost

Financial health and the valuation of corporate pension plans

2019 ◽  
Vol 19 (4) ◽  
pp. 459-490
Author(s):  
Jun Cai ◽  
Miao Luo ◽  
Alan J. Marcus
Keyword(s):  
Property Rights ◽  
Pension Plan ◽  
Pension Plans ◽  
Defined Benefit ◽  
Financial Health ◽  
Valuation Effects ◽  
Defined Benefit Pension Plan ◽  
Corporate Pension ◽  
Standing Question

AbstractWe return to the long-standing question ‘Who owns the assets in a defined benefit pension plan?’ Unlike earlier studies, we condition the market's assessment of implicit property rights on the sponsoring firm's financial health. Valuations of financially strong firms, and those that are strengthening, are more responsive to pension plan funding. For these firms, each extra dollar of net plan assets is valued at between $0.50 and $1.00. In contrast, for weak and weakening firms, valuation effects are statistically indistinguishable from zero. This result is consistent with the higher likelihood that they will renege on their pension obligations.

scholarly journals Cost saving and the freezing of corporate pension plans

2020 ◽  
Vol 188 ◽  
pp. 104211
Author(s):  
Joshua D. Rauh ◽  
Irina Stefanescu ◽  
Stephen P. Zeldes
Keyword(s):  
Cost Saving ◽  
Pension Plans ◽  
Corporate Pension
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