The Accounting Review Vol. 73 No. 3 1998
The Expected Rate of Return on Pension Funds and Asset Allocation as Predictors of Portfolio Performance.
Abstract
We examine the correlation between the expected rate of return on pension assets (ERR), as reported in the financial statements, and the com- position of the pension portfolio, measured as the percent invested in equities (% Equity). Our evidence indicates that ERR and %Equity are related, but the relation is rather weak. We also examine whether ERR and %Equity are correlated with future returns on pension assets. Only %Equity is correlated with future pension returns. Our results suggest that the FASB should consider the enforcement rather than elimination of current disclosure requirements regarding pension asset composition.
- DOI
- 10.2308/tar-902585
- Volume
- 73
- Issue
- 3
- Pages
- 335-352
- Language
- en
- Sources
- openalex crossref