Tag: pension
Abstract I examine the determinants and consequences of corporate pension plan investments in hedge funds and private equity, commonly referred to as ‘alternative assets’. I find that highly leveraged firms with low market-to-book ratios and volatile earnings performance are more likely to invest in alternative assets, indicating that financially constrained firms choose alternative investments to…
The brief’s key findings are: The funded status for local plans fell from 83 percent in 2006 to 77 percent in 2010, similar to the pattern for state plans. Discounting liabilities at the riskless rate would reduce the funded status to the 50-percent range. Local plans are more expensive than state plans, but they hav…
