AN INVESTIGATION OF MOTIVATION FOR VOLUNTARILY TERMINATING OVERFUNDED PENSION PLANS.
Item
-
Title
-
AN INVESTIGATION OF MOTIVATION FOR VOLUNTARILY TERMINATING OVERFUNDED PENSION PLANS.
-
Identifier
-
AAI8508701
-
identifier
-
8508701
-
Creator
-
HAMDALLAH, AHMED EL-SAYED.
-
Contributor
-
William Ruland
-
Date
-
1985
-
Language
-
English
-
Publisher
-
City University of New York.
-
Subject
-
Business Administration, Accounting
-
Abstract
-
This study develops and tests management's factors which can predict and explain the decision to terminate overfunded pension plans. This study also examines the stock price reaction to pension plan termination around the termination announcement date. A sample of firms terminating overfunded pension plans is compared with a sample of firms continuing overfunded plans.;The empirical results indicate that the existence of management compensation plans tied to reported income, leverage, the type of employees covered by the pension plan, the percentage of shares owned by managers, and the existence of a tax-loss carryforwards are positively and significantly associated with the decision to terminate overfunded plans. Firm size and liquidity position, on the other hand, appear to be negatively associated with such a decision.;The examination of stock prices reaction to the termination of overfunded plans finds that the termination of overfunded plans has an impact on the stock prices of firms terminating their plans around the termination announcement. The results also show evidence of differential market responses to the termination of overfunded plans between high and low excess assets portfolios.
-
Type
-
dissertation
-
Source
-
PQT Legacy CUNY.xlsx
-
degree
-
Ph.D.
-
Program
-
Business Administration
