Why do healthy firms freeze their defined-benefit pension plans?

被引：12
|
作者：
Atanasova, Christina [1 ]
Hrazdil, Karel [1 ]
机构：
[1] Simon Fraser Univ, Burnaby, BC, Canada
来源：
GLOBAL FINANCE JOURNAL | 2010年 / 21卷 / 03期
关键词：
Defined-benefit pensions; Plan freeze; Wealth transfer; Equity returns; Credit ratings;
D O I：
10.1016/j.gfj.2010.09.006
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examine the firms' decisions in freezing their defined-benefit pension plans and the effect it has on shareholders' wealth. Plan freezes help relieve sponsors of the implicit promises made to employees regarding future compensation. We find evidence that a pension plan freeze has a positive impact on sponsors' equity returns and credit ratings. Firms that choose to freeze their pension plans experience an increase in equity return and a decrease in the probability of a credit downgrade. Crown Copyright (C) 2010 Published by Elsevier Inc. All rights reserved.
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页码：293 / 303
页数：11
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