The Impact of Pension Sector Reforms on the Financial Viability of Pension Plans in Kenya

2011 ◽  
Author(s):  
William Ambaka Akwimbi
Keyword(s):  
Pension Plans ◽  
Financial Viability ◽  
The Impact

Accounting Discretion, Horizon Problem, and CEO Retirement Benefits

2009 ◽  
Vol 84 (5) ◽  
pp. 1553-1573 ◽  
Author(s):  
Paul Kalyta
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Discretionary Accruals ◽  
Pension Plans ◽  
Primary Data ◽  
Retirement Benefits ◽  
Horizon Problem ◽  
Accounting Choices ◽  
Fortune 1000 ◽  
The Impact

ABSTRACT: Empirical research on the impact of managerial retirement on discretionary accounting choices is inconclusive, with most studies finding no evidence of earnings management in the pre-retirement period. I argue that income-increasing accounting choices in final pre-retirement years are particularly appealing to managers whose pension depends on firm performance in these years. Using primary data on retired CEOs of Fortune 1000 firms, I investigate the impact of CEO pension plans on discretionary accruals. Consistent with the prediction, I find evidence of income-increasing earnings management in the pre-retirement period only when CEO pension is based on firm performance. I also report evidence of negative abnormal market reaction to CEO retirement in firms with performance-contingent CEO pensions.

scholarly journals The impact of state aid on the survival and financial viability of aided firms

2017 ◽  
Vol 100 ◽  
pp. 193-214 ◽  
Author(s):  
Sven Heim ◽  
Kai Hüschelrath ◽  
Philipp Schmidt-Dengler ◽  
Maurizio Strazzeri
Keyword(s):  
State Aid ◽  
Financial Viability ◽  
The Impact

scholarly journals A Review of the Impact of Reforms on Financial Viability and Sustainability of Tanzania’s Power Sector

2021 ◽  
Vol 8 (6) ◽  
pp. 47
Author(s):  
James Andilile ◽  
Saganga Mussa Kapaya
Keyword(s):  
Negative Pressure ◽  
Financial Viability ◽  
Power Sector ◽  
Ardl Model ◽  
Paired Sample ◽  
Financial Condition ◽  
Theoretical View ◽  
The Government ◽  
The Impact

In Tanzania, reforms were mooted in the 1990s to solve two intertwined problems; the financing of investment and reducing the fiscal drain on the government to the sector. This study deploys the ARDL Model and paired-sample t-statistic tests, with profitability and liquidity data from 1989 to 2020 to examine the impact of the reforms on sectoral financial condition in Tanzania. The results suggest that both profitability and liquidity did not significantly improve after reforms. Apart from commercialization policy, other variables were not statistically significant with privatization and liberalization law exerting a negative pressure on liquidity. The findings, therefore, appear to contradict the theoretical view that the reforms improve the financial condition of both the sector and the governments. The outcome can be explained by unfinished reforms manifested by continued politicization of the sector hence underpricing and underinvestment. To ensure sectoral financial viability and sustainability we recommend that the reform policies such as commercialization, corporatization, and independent regulation should be prioritized. These findings will add value to policymakers in Tanzania and beyond which are reforming their power sectors by recognizing that efficient pricing and investment are key for a viable and sustainable financial condition of the sector.

scholarly journals The impact of aggregate mortality risk on defined benefit pension plans

2010 ◽  
Vol 9 (4) ◽  
pp. 481-503 ◽  
Author(s):  
IRENA DUSHI ◽  
LEORA FRIEDBERG ◽  
TONY WEBB
Keyword(s):  
Mortality Risk ◽  
Pension Plans ◽  
Defined Benefit ◽  
Benefit Plan ◽  
Defined Benefit Plans ◽  
The Impact ◽  
Carter Model ◽  
Male Workers ◽  
Defined Benefit Pension Plans

AbstractWe calculate the risk faced by defined benefit plan providers arising from uncertain aggregate mortality – the risk that the average participant will live longer than expected. First, comparing the widely cited Lee–Carter model to industry benchmarks that are commonly employed by plan providers, we show that these benchmarks appear to substantially underestimate longevity. The resultant understatement of liabilities may reach 12.2% for typical male participants in defined benefit plans and may reach 22.4% for male workers aged 22. Next, we consider consequences for plan liabilities if aggregate mortality declines unexpectedly faster than is predicted by a putatively unbiased projection. There is a 5% chance that liabilities of a terminated plan would be 3.1% to 5.3% higher than what is expected, depending on the mix of workers covered.

Menu Effects of Retirement Pension Plans: The Impact of Equity Exposure on Equity Allocation

2019 ◽  
Vol 33 (3) ◽  
pp. 21-50
Author(s):  
Jongwon Bae ◽  
Inwook Song ◽  
Kyonghee Lee
Keyword(s):  
Pension Plans ◽  
Retirement Pension ◽  
The Impact

A Study of the Relationship between a Going Concern Opinion and Its Financial Distress Metrics

2017 ◽  
Vol 14 (2) ◽  
pp. 17-28 ◽  
Author(s):  
Vikram Desai ◽  
Joung W. Kim ◽  
Rajendra P. Srivastava ◽  
Renu V. Desai
Keyword(s):  
Search Engine ◽  
Financial Distress ◽  
Primary Objective ◽  
Financial Viability ◽  
Going Concern ◽  
Going Concern Opinion ◽  
One Year ◽  
The Impact ◽  
First Time ◽  
The Relationship

ABSTRACT The primary objective of this paper is to employ search engine technology to investigate the relationship between first-time going concern opinions (GCOs) and the financial viability of the GCO recipients using delisting as a criterion rather than bankruptcy. The paper also investigates the impact of client distress factors on auditors' propensity to issue GCOs. The search engine enables us to examine the entire population of 10-K filings from 1995 to 2015 and also to obtain delisting data, which are not readily available in commercial databases. Contrary to prior research, we find that the survival rate of first-time GCOs is much lower when we use delisting as a measure of financial viability. Around 26 percent of the companies that receive their first GCOs are delisted within a period of one year of the audit opinion date, and 50 percent of the companies that receive their first GCOs are delisted within a period of three years. The bankruptcy rate of first-time GCO companies within one year is around 9 percent. Such evidence may prove useful to the PCAOB's effort to expeditiously assess the intended benefit of GCOs. In addition, we find that the propensity of auditors to issue GCOs varies for each distress factor.

Management of pension discount rate and financial health

2016 ◽  
Vol 8 (2) ◽  
pp. 142-162
Author(s):  
Paula Diane Parker ◽  
Nancy J. Swanson ◽  
Michael T. Dugan
Keyword(s):  
Earnings Management ◽  
Discount Rate ◽  
Design Methodology ◽  
Pension Plans ◽  
Financial Health ◽  
Z Score ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

Purpose This study aims to examine the unexpected portion of the pension discount rate to determine if the pension discount rate is being used to manage earnings for both financially healthy and financially unhealthy firms as categorized based upon their Altman z-score for bankruptcy. Design/methodology/approach Regression analysis is conducted with the unexpected portion of the pension discount rate as the dependent variable and various metrics indicating potential firm strengths and weaknesses as the independent variables. Findings This study finds evidence that suggests managers for both groups of firms are using their choice of discount rate to manage bottom-line earnings. These findings highlight the patterns of various firm choice differences found between the two groups and the magnitude of the differences between the groups. Originality/value Three streams of literature are considered in this research: earnings management, defined pension plans and z-score bankruptcy. This study extends prior research by examining the unexpected portion of the pension discount rate based on the z-score determination of whether a firm is considered financially healthy or financially unhealthy. Our findings highlight the impact of various firm choice differences found between the two groups of firms.

Financial planning for retirement: the role of income

2019 ◽  
Vol 37 (6) ◽  
pp. 1419-1440
Author(s):  
Milagros Vivel-Búa ◽  
Lucía Rey-Ares ◽  
Rubén Lado-Sestayo ◽  
Sara Fernández-López
Keyword(s):  
Driving Forces ◽  
Pension Plans ◽  
Retirement Savings ◽  
Content Type ◽  
Working Lives ◽  
Future Income ◽  
Wealth Inequalities ◽  
The Individual ◽  
The Impact

PurposeThe purpose of this paper is to study the driving forces of both the decision to participate in individual pension plans and the amount of money allocated to such plans. Moreover, this paper evaluates the potential role that income plays, which has not previously been considered in depth in the financial literature.Design/methodology/approachBased on a sample of the Spanish population over the period 2008–2015, this paper estimates probit and tobit models, using 165,791 observations. The driving forces of private retirement savings comprise demographic, financial and socio-economic characteristics.FindingsThis paper confirms the impact of socio-demographic and economic variables on participation and monetary contributions to pension plans. It also confirms that income plays a non-negligible role. Moreover, empirical evidence reveals that the effect of gender is related to the income stratum to which the individual belongs.Originality/valueRetirement planning plays a key role in retirees’ future income and several countries have emphasised the importance of private individual savings to supplement the minimum provided by public pension schemes. The previous literature has concluded that those who plan their retirement end their working lives with three times the wealth of non-planners. Consequently, analysis of whether people are saving enough for their retirement can contribute to avoiding future wealth inequalities among retirees. Spain is one of the countries with the greatest inequality in income distribution, so this issue is of even greater interest.

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