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

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

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dc.contributor.author Liu, Weixi en_GB
dc.contributor.author Tonks, Ian en_GB
dc.date.accessioned 2009-11-26T14:22:56Z en_GB
dc.date.accessioned 2011-01-25T10:28:22Z en_US
dc.date.accessioned 2013-03-20T11:10:08Z
dc.date.issued 2009-06 en_GB
dc.description.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. en_GB
dc.identifier.uri http://hdl.handle.net/10036/86957 en_GB
dc.language.iso en en_GB
dc.publisher University of Exeter Business School en_GB
dc.relation.ispartofseries Xfi Centre for Finance and Investment working papers en_GB
dc.relation.ispartofseries 09/01 en_GB
dc.relation.url http://xfi.exeter.ac.uk/workingpapers.php en_GB
dc.subject pension assets en_GB
dc.subject pension liabilities en_GB
dc.subject stock market transparency en_GB
dc.subject FRS 17 en_GB
dc.title Pension fund deficits and stock market efficiency: evidence from the United Kingdom en_GB
dc.type Working Paper en_GB
dc.date.available 2009-11-26T14:22:56Z en_GB
dc.date.available 2011-01-25T10:28:22Z en_US
dc.date.available 2013-03-20T11:10:08Z
dc.identifier.issn 1743-548X en_GB
dc.description Wotking paper en_GB


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