Does freezing a defined benefit pension plan increase company value?

In seeking to minimise pension risk, many companies have chosen to freeze or close defined benefit pension plan in the hope such an approach might give them time to adjust and increase corporate value. In a recent article published in the Financial Analysts Journal, Brendan McFarland, Gaobo Pang and Mark Warshawsky examine the impact of freezing or closing a defined benefit plan on the sponsoring companies’ market value.

 

Sponsored Content

Leave a Comment

GIC, Temasek eye trillions of growth in climate adaptation market

GIC, Temasek eye trillions of growth in climate adaptation market

Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.

Sort content by

Alternative PE vehicles underperform

Alternative private equity vehicles underperform the associated main fund, new research from Harvard's Josh Lerner and MIT's Antoinette Schoar has shown for the first time - but skilled limited partners flip the script.

Pensions’ flawed return forecasts

We all know past performance is not indicative of future results, but a new study finds evidence that US public pensions are basing performance forecasts on their own prior experiences anyway.

PRI demands ESG action from consultants

A new report from the Principles for Responsible Investment states that investment consultants must put ESG issues at the core of the advice they offer, to build a sustainable finance system.

A guide to long-term mandates

Focusing Capital on the Long Term has published a paper with 10 things asset owners and managers can do to negotiate deals that align their incentives – and thinking – with longer time horizons.

SDGs economic opportunity: report

A new report from the PRI and PwC states that global investors can perform their fiduciary duty and create a boon in market opportunities and jobs by actively pursuing the SDGs.

Investors’ role in company collaboration

Investors play an important role in facilitating corporate collaborations to improve sustainability says a leading Harvard academic in sustainability.

Previous