Journal of Accounting and Economics Vol. 9 No. 1 1987
Determinants of corporate pension funding strategy
Abstract
Several hypotheses concerning pension funding strategy are tested in a cross-sectional regression model on a sample of 255 firms. Results are consistent with the following explanations: (1) finance incentives (tax benefits and financial slack) for high-level funding, (2) labor incentives for low-level funding, and (3) financial statement incentives relating to political costs for high-level funding and debt contracting costs for low-level funding. Pension funding strategy appears to be complex, involving tradeoffs between funding incentives. The nature of these interactions and tradeoffs remains to be clarified through future research.
- DOI
- 10.1016/0165-4101(87)90016-4
- Volume
- 9
- Issue
- 1
- Pages
- 35-59
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref