How Defined, Benefit Pension Assets Affect the Returns and Volatility of the Sponsor’s Stock

• Main Authors: Marshall, Brooks, Michael, Timothy B., Maloney, David M, Damanpou, Faramarz
• Format: Article
• Language: English
• Published: Universiti Utara Malaysia 2008
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/25090/1/IJBF%205%202%202008%2087%20100.pdf; http://repo.uum.edu.my/25090/; http://ijbf.uum.edu.my/index.php/previous-issues/136-the-international-journal-of-banking-and-finance-ijbf-vol-5-no-2-2008
• Institution: Universiti Utara Malaysia

In its valuation of firms with defined benefit plans, the stock market combines changes in the valuation of pension assets with changes in the valuation of the net core assets. Unfortunately, aggregating the two disparate asset classes in valuation discards information about both classes. This work...