In Good Times and in Bad: Defined Benefit Pensions and Corporate Financial Policy

Abstract Unlike defined benefit pensions, 401(k) plans provide little guidance on how to turn accumulated assets into income. The key risk that retirees face is outliving their assets. Insurance against such risk is available through several routes, including immediate annuities, deferred annuities, and additional Social Security through delayed claiming. Under this Social Security bridge option, participants would tap their 401(k) for payments equal to their Social Security to delay claiming. This paper compares these three options in simulations against a baseline in which no assets are used to obtain lifetime income. In each option, assets not allocated to purchasing lifetime income are consumed following the Required Minimum Distribution rules. The analysis finds that, when market and health shocks are included alongside longevity uncertainty, the Social Security bridge option is generally the best for households with median wealth. Wealthier households can benefit from combining the bridge option with a deferred annuity. Part of a symposium sponsored by the Economics of Aging Interest Group.

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Looking in the Rearview Mirror: The Effect of Managers' Professional Experience on Corporate Financial Policy

Review of Financial Studies ◽

10.1093/rfs/hhv051 ◽

2015 ◽

pp. hhv051 ◽

Cited By ~ 23

Author(s):

Amy Dittmar ◽

Ran Duchin

Keyword(s):

Professional Experience ◽

Financial Policy ◽

Corporate Financial Policy ◽

Rearview Mirror

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Environmental responsibility and financial policy of the company: methodological aspects of the analysis

10.12737/1246521 ◽

2021 ◽

Author(s):

Aleksey Makarov ◽

Irina Hvostova ◽

Elena Ryabova ◽

Aleksandr Larin

Keyword(s):

Empirical Analysis ◽

Environmental Responsibility ◽

Financial Policy ◽

Economic Aspects ◽

Financial Efficiency ◽

Credit Management ◽

Wide Range ◽

Corporate Financial Policy ◽

Methodological Aspects ◽

The Empirical Analysis

The actualization of environmental problems makes it necessary to study them in connection with the financial and economic aspects of the modern company. The main content of the monograph is formed by the conceptual, theoretical and methodological aspects of the analysis of corporate financial policy, studied in conjunction with the study of the factors of environmental responsibility of the company. The necessity of revision is analyzed and the directions of improvement of the methodological apparatus for the formation and implementation of financial policy in new conditions are determined. Particular attention is paid to the empirical analysis of indicators of environmental responsibility and environmental efficiency at different organizational levels. The results obtained are valuable in order to improve corporate practices for managing environmental responsibility factors and improving the financial efficiency of companies. For a wide range of readers, including researchers, practitioners, postgraduates, applicants and students studying in the areas of "Economics", "Finance and Credit", "Management".

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