In this work we solve in a closed form the problem of an agent who wants to optimise the inter-temporal utility of both his consumption and leisure by choosing: (i) the optimal inter-temporal consumption, (ii) the optimal inter-temporal labour supply, (iii) the optimal share of wealth to invest...

We show that people exposed to greater pension risk are less likely to invest in risky assets. We exploit a reform that links people's future pension benefits to their pension funds' funding ratio - a measure of the fund's financial health-making funding ratios a fund-specific measure of pension...

I test whether the introduction of a new pension standard (FRS 17) in the U.K., which virtually eliminated the smoothing mechanisms in pension accounting, is associated with a reallocation of assets from equities to bonds in defined benefit pension plans. My findings indicate that sample firms...

Pension experts have long conjectured that pension accounting rules encourage firms to invest pension assets in risky asset classes (Zion and Carcache 2003, Gold 2005). The recent passage of IAS 19 Employee Benefits (Revised) (hereafter, “IAS 19R”) marks a fundamental shift in pension...

The discount rate represents a critical choice in accounting for corporate defined-benefit pension plans due to the long-term nature of pension liabilities. U.S. GAAP and IFRS mandate the AA corporate bond rate. Their requirement is subject to much debate, with the risk-free rate and the...

This study empirically analyzes over 3300 judgments on the long term and short term usefulness of individual firm pension accounting estimates over ten consecutive years (2001-2010). We find that the point estimates allowed by GAAP create challenges for auditors and do not appear to be useful...

Unlike the corporate sector, detailed estimates of unfunded pension liabilities for most local governments are not available. Thus, prior research on the association between unfunded pension liabilities and municipal creditor decisions (Copeland and Ingram 1983; Marks and Raman 1985) has implicitly...

This paper analyses pension accounting choice in Germany for firms using IFRS or US GAAP. It shows that firms choose the pension discount rate and the treatment of actuarial gains and losses in order to smooth the effect of inherently volatile pension numbers. Pension discount rates for German...

In Nigeria, pension was established in 2004 through the Pension Reform Act, 2004 and since then, pension schemes have manifested in twofold: ‘old' and ‘new'. The Pension Act No. 102 of 1979 is the “old pension” (non-contributory) and Pension Reform Act of 2004 (including the...

Cash contributions to defined benefit pension (DB) plans reduce cash flows from operations without directly affecting the current year's net income. We utilize this unique setting to investigate how managerial incentives to report higher cash flows from operations, executive compensation in...