stochastic volatility of asset prices and to give theoretical arguments for empirically well documented facts. We show that … stochastic volatility. …

We investigate how managers smooth volatility in balance sheets, using the pension accounting change IAS 19R as a shock … to balance sheet volatility. This shock increases pension plans' funding transparency, which is the source of volatility … to mitigate volatility at this source, but also plan settlements increase drastically. The volatility of accruals …

implicit volatility by a decrease in the interest rate. We take our results as strong evidence that central banks use interest …