This paper investigates the impacts of defined-benefit (DB) pension plans on the corporate investment choices between diversifying and non-diversifying investments. We find a firm’s DB plan coverage is negatively associated with its propensity of making a major investment. Subject to a major...

This paper examines the driven factor for asset investment under the defined benefit pension plan, especially in the underfunded case, there are two mechanisms of motivation support these driven factors, one is risk management and the other one is risk-shifting. This paper finds that if the...

I explore the role of corporate social responsibility (CSR) in mitigating managers' opportunistic behavior related to defined benefit (DB) pension plan management. Strong CSR firms tend to engage less in earnings manipulation associated with executive option granting and CFO's pay sensitivity to...

In a series of online experiments, we examine whether increasing the incentives to save by reducing the income tax rate on pensions results in higher savings. Our findings show that reducing the income tax rate on pensions has almost no significant effect on savings behavior. However, if we vary...

We analyze the effect of direct labour representation in supervisory boards on the risk of corporate pension plans.We exploit employee representation requirements mandated by German labour law and find that firms with parity employee representation reduce pension plan risk both in terms of...