The Association between Board Composition and Corporate Pension Policies

Vafeas, Nikos; Vlittis, Adamos

doi:10.1111/fire.12113

Cited by 15 publications

(38 citation statements)

References 77 publications

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“…This finding supports H2a and suggests that firms with more independent directors on boards are less likely to invest pension assets in risky investments. Our evidence is consistent with Vafeas and Vlittis's (2016) finding that outside directors are more committed to protecting the interests of pension beneficiaries. Thus, the more independent directors, the less likely that pension assets will be allocated to risky asset classes.…”

Section: Empirical Analyses and Resultssupporting

confidence: 91%

“…Our findings suggest that firms with larger boards and more independent directors tend to allocate fewer pension assets to equities. These results support previous findings that larger boards (Pathan, 2009;Wang, 2012) and more independent directors (Vafeas and Vlittis, 2016) encourage less risktaking in pension asset allocations as they are more likely to take account of the benefits to their employees.…”

Section: Discussionsupporting

confidence: 90%

“…Top management and boards of directors can significantly influence pension policy‐making (Cocco and Volpin, 2007; Vafeas and Vlittis, 2016, 2018). The majority of the literature focuses on DB pension plans for US firms.…”

Section: Introductionmentioning

confidence: 99%

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Impact of Board Composition on Pension De‐risking Strategies

Al‐Najjar

2021

British J of Management

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Pension de‐risking strategies have been widely adopted by firms with defined‐benefit (DB) pension plans to reduce pension risk. This paper investigates the influence of board composition on pension de‐risking strategies within the UK, focusing particularly on three strategies: changes to pension asset allocations, switches from DB to defined‐contribution (DC) pension plans and pension buy‐ins and buy‐outs. Our findings suggest that firms with larger boards and more independent directors are less likely to invest their pension assets in equities. Survival analysis shows that firms with larger boards are slower to switch from DB to DC pension plans. This is consistent with stakeholder theory, in that firms with large boards or more independent directors are more likely to protect employees’ benefits when de‐risking their DB pension plans. However, firms with more female directors are faster to switch fully from DB to DC pension plans and slower to engage in pension buy‐in and buy‐out transactions. This suggests that female directors encourage fully switching DB pension plans, while they are concerned with the significant costs of pension buy‐in or buy‐out. This research provides clear evidence that pension de‐risking strategies are influenced by board composition. UK pension trustees play a key role in determining switches from DB to DC pension plans, mitigating the impact of independent directors.

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Section: Empirical Analyses and Resultssupporting

confidence: 91%

Section: Discussionsupporting

confidence: 90%

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Impact of Board Composition on Pension De‐risking Strategies

Al‐Najjar

2021

British J of Management

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“…Subject to these procedures, the final sample consists of 83 banks (520 observations). To address possible concerns about outliers, all continuous variables are winsorized at the 1 st and 99 th percentiles (Vafeas & Vlittis, 2016).…”

Section: Methodsmentioning

confidence: 99%

Board Characteristics and Accounting Performance in Banking Industry: The Indonesian Experience

Prabowo

2018

Jurnal Keuangan Dan Perbankan

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This paper examines the effect of board characteristics on accounting return in Indonesian banking industry. The conceptual framework borrows from agency theory claiming that board is held liable for monitoring responsibilities and that monitoring effectiveness will lead to higher corporate achievement. The theory predicts that board characteristics matter in constituting firm performance. It is hypothesized that leadership structure, representation of independent directors, board size, and the rank of college board chairperson attended are necessary attributes enable the board to deliver better performance. The investigation is based on a dataset consisting of 83 banks during 2009-2015. Panel data analysis reveal that the proportion of independent directors, board leadership structure, and board size shows insignificant influence. The rank of universities the board chairperson graduated is found to have an impact on accounting earnings. The impact is robust after the controlling owners are taken into account. The association between university rank and performance is more pronounced in the listed-banks.

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“…Building a system of effective interaction with the elements of the environment is an important area of activity for the industrial enterprises, which allows not only effectively respond to changes in environmental conditions, but also to actively use the resources of the environment to enhance and improve its efficiency [4,5].…”

mentioning

confidence: 99%

Development of corporate associations of construction industrial enterprises and subjects of financial and credit environment by financial infrastructure merging

2017

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Abstract. The article is devoted to solving important problems of the modern economy, which is the formation, development, and improvement of the efficiency of the combined corporate structures, including industrial enterprises of the construction industry, development directions and mechanisms of regulation of the process of interaction with the financial and credit environment, as well as the formation of corporations, financial infrastructure. According to the authors, it is the basis for the successful development of the industry.

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The Association between Board Composition and Corporate Pension Policies

Cited by 15 publications

References 77 publications

Impact of Board Composition on Pension De‐risking Strategies

Impact of Board Composition on Pension De‐risking Strategies

Board Characteristics and Accounting Performance in Banking Industry: The Indonesian Experience

Development of corporate associations of construction industrial enterprises and subjects of financial and credit environment by financial infrastructure merging

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