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dc.contributor.authorKlumpes, Paul J. M.en_GB
dc.contributor.authorMcMeeking, Kevin P.en_GB
dc.contributor.departmentImperial College, London; University of Exeteren_GB
dc.date.accessioned2008-06-12T09:03:36Zen_GB
dc.date.accessioned2011-01-25T10:16:25Zen_GB
dc.date.accessioned2013-03-19T15:44:52Z
dc.date.issued2007en_GB
dc.description.abstractNew U.K. pension accounting regulations significantly increase the exposure of the balance sheets of U.K. firms to volatilities in pension fund valuations. We examine whether the abnormal returns of firms that voluntarily used market-based pension discount rates are significantly different from the abnormal returns of industry-matched pair samples of firms that retained traditional cost-based valuation assumptions during the period surrounding the release of the related exposure draft. We also examine the interest rate sensitivity of stock price returns over the 4-year period before and after the announcement date. Consistent with our hypotheses, U.K. stock price returns incorporate the effect of unexpected interest rate changes on sources of pension earnings for firms that voluntarily switched to market-based assumptions but do not incorporate these effects for firms that did not switch. These results suggest that unexpected changes in interest rates have a differential effect on a firm's sources of pension, financial, and core earnings.en_GB
dc.identifier.citationRisk Management & Insurance Review, Fall 2007, Vol. 10 Issue 2, p221-246en_GB
dc.identifier.doi10.1111/j.1540-6296.2007.00116.xen_GB
dc.identifier.urihttp://hdl.handle.net/10036/29943en_GB
dc.language.isoenen_GB
dc.publisherBlackwellen_GB
dc.relation.ispartofseriesAccounting Working Papersen_GB
dc.relation.ispartofseries06-07/04en_GB
dc.relation.urlhttp://www.blackwell-synergy.com/loi/rmiren_GB
dc.subjectpension accountingen_GB
dc.subjectstock marketen_GB
dc.titleStock Market Sensitivity to UK firms? pension discounting assumptionsen_GB
dc.typeArticleen_GB
dc.date.available2008-06-12T09:03:36Zen_GB
dc.date.available2011-01-25T10:16:25Zen_GB
dc.date.available2013-03-19T15:44:52Z
dc.identifier.issn10981616en_GB
dc.identifier.issn10981616en_GB
dc.descriptionArticle; an earlier version appeared as University of Exeter, Department of Accounting working paper 06-07/04en_GB
dc.identifier.journalRisk Management & Insurance Reviewen_GB


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