We jointly test moral hazard and tax benefit hypotheses related to the defined benefit pension plan funding and investment risk-taking decisions by incorporating the pension plan termination probabilities. We hypothesize that sponsors with different plan termination probabilities are dominated...

Pension benefit guarantee policies have been introduced in several countries to protect private pension plan members from the loss of income that would occur if a plan was underfunded when the sponsoring firm terminates a plan. Most of these public insurance schemes face financial difficulty and...

Pension benefit guarantee policies have been introduced in several countries to protect private pension plan members from the loss of income that would occur if a plan was underfunded when the sponsoring firm terminates a plan. Most of these public insurance schemes face financial difficulty and...