Sección: ArtículosTítulo: Financial flexibility and tax incentives : evidence from defined benefit corporate pension plans in Japan / Shingo Goto, Noriyoshi YanaseAutor: Goto, ShingoNotas: Sumario: Contrary to the objective of a major corporate pension reform in Japan to enhance retirement income security, and despite the increased relative tax benefits of externally-funded plans, the number of firms that do not sponsor externally-funded defined benefit plans or defined contribution plans has been increasing steadily. We study the common characteristics of firms sponsoring only traditional internally-funded lump sum plans that provide only weak protection of the employees¿ retirement benefits. We find that smaller firms with higher growth prospects (price-to-book ratios) and a younger workforce are less likely to adopt externally-funded plans and more likely to terminate them when they have one. Firms sponsoring only internally-funded plans tend to exhibit lower profitability than their peers with otherwise similar characteristics. These results suggest that smaller firms with higher growth prospects and a younger workforce tend to have stronger incentives to ensure financial flexibility by providing only weak protection of their employees¿ retirement benefits.Registros relacionados: En: Geneva papers on risk and insurance : issues and practice. - Geneva : The Geneva Association, 1976- = ISSN 1018-5895. - 07/10/2013 Volumen 38 Número 4 - octubre 2013 Otras clasificaciones: 2Derechos: In Copyright (InC)Referencias externas:
