Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/163187 
Erscheinungsjahr: 
2017
Schriftenreihe/Nr.: 
ADBI Working Paper No. 682
Verlag: 
Asian Development Bank Institute (ADBI), Tokyo
Zusammenfassung: 
This paper investigates the impacts of defined-benefit (DB) pension plans on the corporate investment choices between diversifying and non-diversifying investments. We find a firm's DB plan coverage is negatively associated with its propensity of making a major investment. Subject to a major investment decision, however, the firm with higher DB plan coverage is more likely to diversify, i.e., acquire firms abroad or in other industries, rather than invest in fixed assets or make non-diversifying (i.e., domestic horizontal) acquisitions. Moreover, in diversifying acquisitions, they are more likely to invest in countries or industries with a strongly unionized workforce. Further analysis on post-investment performance shows that firms with higher DB plan coverage experience a greater improvement in operating profitability after a diversifying acquisition, and the improvement mainly comes from a higher asset turnover rather than cost reduction. On the other hand, DB plan sponsoring firms experience a decline in profitability after a large capital expenditure or a non-diversifying acquisition. We propose that both the bargaining motive and the conforming motive can explain these results.
Schlagwörter: 
son bias
parental investment
old age support
reciprocity
JEL: 
G30
G31
G34
Creative-Commons-Lizenz: 
cc-by-nc-nd Logo
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
759.87 kB





Publikationen in EconStor sind urheberrechtlich geschützt.