Articles

Pension Plan Funding and Stock Market Efficiency

J. Marin, F. FRANZONI

CFA Digest

August 2006, vol. 36, n°3, pp.43-44

Departments: Finance

http://ssrn.com/abstract=590683


The article provides information on the funding of pension plans and efficiency of stock market in the U.S. A pension plan is specified to be underfunded when the value of pension assets is lower than the figured benefit obligation. It was suggested that regulators increase the awareness of the implications of the liabilities of pension for the value of the company. Furthermore, it recommends the accounting system be reclaimed to permit pension funding status to be shown in income statements


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