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Title: Pension fund finance and sponsoring companies
Authors: De Haan, L
Keywords: Pension funds;Sponsoring company;Capital structure;Asset allocation
Issue Date: 2012
Publisher: Cambridge University Press
Citation: Journal of Pension Economics and Finance, 11(3), 439 - 463, 2012
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.
Description: Copyright © Cambridge University Press 2012.
ISSN: 1474-7472
Appears in Collections:Economics and Finance
Dept of Economics and Finance Research Papers

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