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    Defau, Laurens and De Moor, Lieven 2018. The impact of plan and sponsor characteristics on pension funds’ asset allocation and currency diversification. Journal of Asset Management, Vol. 19, Issue. 1, p. 27.
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    DE HAAN, LEO 2016. Recovery measures of underfunded pension funds: higher contributions, no indexation or pension cuts?. Journal of Pension Economics and Finance, p. 1.
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Pension fund finance and sponsoring companies*

  • E. PHILIP DAVIS (a1) and LEO DE HAAN (a2)
Abstract

We present empirical evidence on the funding and portfolio allocation of around 200 Dutch corporate pension funds over the period 1996-2005, with a special focus on the influence of the sponsoring firm. We find that unprofitable and small firms contribute less to their pension funds than profitable and large firms, consistent with theories of capital market imperfections. Sponsor contributions are found to be positively correlated with leverage, suggesting that tax effects play a role. Defined benefit funds invest relatively more in equity and less in bonds than their defined contribution counterparts, which is in accordance with the risk shifting theory.

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COPYRIGHT: © Cambridge University Press 2012
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Journal of Pension Economics & Finance
  • ISSN: 1474-7472
  • EISSN: 1475-3022
  • URL: /core/journals/journal-of-pension-economics-and-finance
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