Pension fund deficits and stock market efficiency: evidence from the United Kingdom

DSpace/Manakin Repository

Open Research Exeter (ORE)

Pension fund deficits and stock market efficiency: evidence from the United Kingdom

Please use this identifier to cite or link to this item: http://hdl.handle.net/10036/86957

Share:                 



Title: Pension fund deficits and stock market efficiency: evidence from the United Kingdom
Author: Liu, Weixi
Tonks, Ian
Publisher: University of Exeter Business School
Date Issued: 2009-06
URI: http://hdl.handle.net/10036/86957
Links: http://xfi.exeter.ac.uk/workingpapers.php
Abstract: This paper examines the effect of a company’s unfunded pension liabilities on its stock market valuation. Using a sample of UK FTSE350 firms with defined benefit pension schemes, we find that although unfunded pension liabilities reduce the market value of the firm, the coefficient estimates indicate a less than one-for-one effect. Moreover, there is no evidence of significantly negative subsequent abnormal returns for highly underfunded schemes. These results suggests that shareholders do take into consideration the unfunded pension liabilities when valuing the firm, but do not fully incorporate all available information.
Type: Working Paper
Description: Wotking paper
Keywords: pension assetspension liabilitiesstock market transparencyFRS 17
ISSN: 1743-548X


Please note: Before reusing this item please check the rights under which it has been made available. Some items are restricted to non-commercial use. Please cite the published version where applicable.

Files in this item

Files Size Format View
0901.pdf 348.9Kb PDF Thumbnail

This item appears in the following Collection(s)

Browse

My Account

Local Links