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- Title
The Association between Board Composition and Corporate Pension Policies.
- Authors
Vafeas, Nikos; Vlittis, Adamos
- Abstract
This study examines the role of board composition in the determination of pension policies. The results suggest that the proportion of outside directors serving on the board is positively related with pension plan funding levels. In addition, the proportion of outside directors mitigates the relation between financial distress risk and plan underfunding. Last, as firms approach distress, boards with a greater proportion of outside directors tend to allocate a lower fraction of plan assets to riskier securities. Together, our findings suggest that outside directors are mindful of their obligations toward pension plan beneficiaries.
- Subjects
PENSIONS; GOVERNMENT policy; FINANCIAL risk; RISK; UNDERFUNDED pension plans; PENSION plan funding
- Publication
Financial Review, 2016, Vol 51, Issue 4, p481
- ISSN
0732-8516
- Publication type
Article
- DOI
10.1111/fire.12113