January 2017

12Jan

The Information Content of Corporate Pension Funding Status in Japan

By Shingo Goto & Noriyoshi Yanase - This paper tests if a firm's pension funding ratio (pension assets/PBO) reveals the management's private information about the firm's operation when the firm can exercise discretion in pension funding. The lax enforcement of pension funding rules and the prevalence of management forecasts make Japanese firms an ideal testing ground. We show that, among firms with large business uncertainty, large accruals, or high effective tax rates, the pension funding ratio predicts the firm's management forecast...

January 12, 2017
Corporate Governance
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12Jan

Trusts No More: Rethinking the Regulation of Retirement Savings in the United States

By Natalya Shnitser - The regulation of private and public pension plans in the United States begins with the premise that employer-sponsored plans resemble traditional donative, or gift, trusts. Accordingly, the Employee Retirement Income Security Act of 1974 (ERISA) famously “imports” major principles of donative trust law for the regulation of private employer-sponsored pension plans. Statutes regulating state and local government pension plans likewise routinely invoke the structure and standards applicable to donative trusts. Judges, in turn, adjudicate by analogy...

January 12, 2017
Articles, Corporate Governance, Regulation, ,
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12Jan

The Power of Social Pensions

By Wei Huang & Chuanchuan Zhang - This paper examines the impacts of social pension provision among people of different ages. Utilizing the county-by-county rollout of the New Rural Pension Scheme in rural China, we find that, among the age-eligible people, the scheme provision leads to higher household income (18 percent) and food expenditure (10 percent), lower labor supply (6 percent), and better health (11-14 percent). In addition, among the age-ineligible adults, the pension scheme shifts them from farming to...

January 12, 2017
Adequacy, System Sustainability,
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12Jan

Why Do Women Invest Differently than Men?

By Vickie L. Bajtelsmit & Alexandra Bernasek - Several recent studies have found that women invest their pensions more conservatively than men (Bajtelsmit and VanDerhei, 1996; Hinz, McCarthy, and Turner, 1996) and that women are more risk averse (Jianakoplos and Bernasek, 1996). Although these findings have serious implications for the well-being of women in retirement, the reasons for observed gender differences are less well- defined. This paper surveys the existing literature regarding gender differences in investment and considers the policy implications...

January 12, 2017
Investing
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12Jan

IDA at 65: Heading Toward Retirement or a Fragile Lease on Life? – Working Paper 246

By Todd Moss and Benjamin Leo - As the concessionary lending window of the World Bank, the International Development Association (IDA) has provided grants and low-interest loans to the world's poorest countries for over 50 years. IDA funds projects that address many of the problems associated with slower growth in developing countries related to primary education, basic health services, clean water supply and sanitation, environmental safeguards, business-climate improvements, infrastructure, and institutional reforms. However, looking to the future, IDA's operations will likely be substantially...

January 12, 2017
Corporate Governance, Labor Market, News
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