Risk Shifting Versus Risk Management: Investment Policy in Corporate Pension Plans

By Joshua D. Rauh. 2009

315 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/ba2b86c45842b4d26350376283f3e69f6d40736d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Finance

Citations in the corpus

How Do Pensions Affect Corporate Capital Structure Decisions (2010, unknown): “Rauh (2009) however, shows that investment strategies of pension plans do not behave in this manner, but rather are chosen to minimize expected financial distress costs.”
Corporate Financial and Investment Policies when Future Financing is Not Frictionless (2011, unknown): “Highly levered firms should take safer, and not riskier investments Andrade/Kaplan (1998), Rauh (2006), Peyer/Shivdasani (2001), Ahn/Denis/Denis (2006) Highly levered firms should take more liquid investments Untested Asset Substitution”
Is Cash Negative Debt? A Hedging Perspective on Corporate Financial Policies (2007, unknown): “Based on the correlation between firm-level cash flows and industry-level investment opportunities, our study suggests various easy-to-implement measures of hedging needs that future researchers may find useful (see, e.g., Rauh, 2006b ).”
Do Firms Engage in Risk-Shifting? Empirical Evidence (2016, unknown): “Consistent with the findings in this paper Rauh (2009) finds that risk taking in pension funds is reduced as the financial conditions of a firm deteriorate.”
Playing It Safe? Managerial Preferences, Risk, and Agency Conflicts (2016, background): “Managers’ incentive to play it safe could also explain why empirical research finds little evidence of risk shifting among firms in distress (e.g., Andrade and Kaplan, 1998; Rauh, 2009; Gilje, 2014).”
Public Pension Promises: How Big are They and What are They Worth? (2011, background): “covariance with priced risks (Treynor (1961), Sharpe (1964), Lintner (1965)).”
Pension Fund Asset Allocation and Liability Discount Rates: Camouflage and Reckless Risk Taking by U.S. Public Plans? (2012, unknown): “Subsection 4.3 analyzes how the allocation to risky assets influences the probability that U.S. public pension funds smooth asset valuation”
Dynamic Risk Management (2014, background): “The findings of Andrade and Kaplan (1998) and Rauh (2009) are much more consistent with the statements made by airlines that hedging drops because of collateral and liquidity considerations, not because of risk shifting.”
From Finance to Marketing: The Impact of Financial Leverage on Customer Satisfaction (2015, background): “Leveraged firms are also more likely to invest in assets that are liquid and that produce shortterm cash flows (Campello 2003; Rauh 2009).”
Explaining Corporate Capital Structure: Product Markets, Leases, and Asset Similarity (2012, unknown): “For example, pension obligations have been shown to be an important component of corporate capital structure for firms that sponsor defined benefit pension plans (Shivdasani and Stefanescu (2010), Rauh (2009)).”