Managing corporate pension plans:
Logue, Dennis E.
Managing corporate pension plans: the impacts of inflation / - Washington : American Enterprise Institute for Public Policy Research, c1984. - 68 p. : - Studies in social security and retirement policy AEI studies ; .
Includes bibliographical references.
The asset allocation of defined benefit pension plans is a setting where both risk shifting and risk management incentives are likely be present. Empirically, firms with poorly funded pension plans and weak credit ratings allocate a greater share of pension fund assets to safer securities such as government debt and cash, whereas firms with well-funded pension plans and strong credit ratings invest more heavily in equity. These relations hold both in the cross-section and within firms and plans over time. The incentive to limit costly financial distress plays a considerably larger role than risk shifting in explaining variation in pension fund investment policy among U.S. firms.
0844734861 (pbk.)
Pension trusts
Retirement benefits
HD7105.45.U6 / L63 1984
332.6'7254 / LOG
Managing corporate pension plans: the impacts of inflation / - Washington : American Enterprise Institute for Public Policy Research, c1984. - 68 p. : - Studies in social security and retirement policy AEI studies ; .
Includes bibliographical references.
The asset allocation of defined benefit pension plans is a setting where both risk shifting and risk management incentives are likely be present. Empirically, firms with poorly funded pension plans and weak credit ratings allocate a greater share of pension fund assets to safer securities such as government debt and cash, whereas firms with well-funded pension plans and strong credit ratings invest more heavily in equity. These relations hold both in the cross-section and within firms and plans over time. The incentive to limit costly financial distress plays a considerably larger role than risk shifting in explaining variation in pension fund investment policy among U.S. firms.
0844734861 (pbk.)
Pension trusts
Retirement benefits
HD7105.45.U6 / L63 1984
332.6'7254 / LOG