Search results

We study the potential effects of pension underfunding on corporate investment, financial constraints and improved employee bonding using 10 Pacific-Basin countries (including the United States, Australia, and eight Asian countries) at heterogeneous economic development stages and different regulatory environments. We document that corporate pensions are significantly underfunded in most countries of our sample in the period of 2001–2017, when interest rates were ultralow in most countries. In addition, firms from countries with stronger employee protection and more generous retirement benefits tend to show higher levels of underfunding in their defined benefit (DB) pension plans. To the extent of pension underfunding imposing constraints on corporate investment, we find that firms in these countries can face more constraints on investment when their pension is underfunded.

This study aims to examine whether and how the experience of specialized external governance mechanisms mandated by the Employee Retirement Income Security Act of 1974 – the actuary and auditor – affect pension plan funding.

This study uses data from annual pension plan regulatory reports (Form 5500), Form 10-K filings, Form DEF 14A filings (company proxy statements) and publicly available data sources. The hand-collected data include information related to the pension plan’s actuary and auditor and various pension plan data disclosed in the company’s financial statement footnotes.

The author finds that more experienced actuaries and auditors are associated with better funded pension plans, especially when the company has higher financial risk or lower board independence. Additional analyses indicate that companies with more experienced actuaries and pension plan auditors are more likely to make higher annual pension plan contributions and hold fewer Level 3 fair value assets.

The dearth of pension plan governance research generally focuses on whether and how internal governance mechanisms affect pension plan funding. To the best of the author’s knowledge, this is the first empirical study of the relationship between external pension plan governance mechanisms and pension plan funding.

The purpose of this study was to investigate how pension funds use charts in popular reports. Popular reports communicate a fund’s financial health to non-technical audiences, and often contain charts, tables, and other graphical elements. Do these graphics meet audiences’ information needs and align with chart best practices?

This study focused on the 60 retirement funds receiving a 2021 popular report award from the Government Finance Officers Association. The author analyzed each graphic’s topic and design.

Most funds presented key topics (such as funding rate and portfolio return), but they generally lacked helpful benchmarks or peer comparisons. A total of 30% of reports had one or more broken charts, where their visual elements did not match the underlying data. A total of 70% of the reports contained at least one badly designed chart. These design flaws included non-zero (truncated) axes, hidden non-zero axes and misleading 3D perspectives.

To the best of the authors’ knowledge, this paper is the first to examine chart quality in pension fund popular reports.

The purpose of this article is to challenge the balanced budget practices of U.S. state governments and offer alternatives that may lead to better fiscal, economic and policy outcomes. We contend that the norm of balance may be leading U.S. states to make fiscal decisions that result in less-than-ideal outcomes, especially during economic downturns.

This is a normative article. We examine the scholarly evidence regarding balanced budget practices to assess the appropriateness of balanced budget norms. We also examine the fiscal rules followed by Eurozone countries to draw potential lessons for U.S. states.

We conclude that state governments should move away from strict norms of budget balance and seek more flexible approaches. We suggest that instead of following strict rules and norms of balance, U.S. states should consider implementing escape clauses, debt and deficit ceilings, and fiscal councils. We also suggest that the Federal Reserve be open to lending directly to states during fiscal crises to ensure that states have access to affordable credit.

The balanced budget norm has become ingrained in U.S. state budgeting practices, so much so that public officials and scholars alike rarely question it. The novel contribution of our article is to question this practice in a systematic way and propose alternative approaches.

Outstanding unexercised stock options can motivate managers to engage in actions that increase the value of their company’s stock, including buying back their firm’s stock. The objective of granting stock options to managers is to align their interests with stockholders by tying a portion of their compensation to the company’s stock performance. However, unexercised stock options may have unintended consequences by providing managers with a vested interest in artificially boosting stock prices via stock buybacks. The primary objective of this research is to study the main factors that influence firms' buyback decisions amongst hospitality firms at a time when these firms were clamoring for taxpayer bailouts. Results from logistic regression seem to suggest that outstanding executive stock options are a major contributory factor in a firm’s buyback decision. Estimates also indicate that larger, more profitable firms will likely engage in stock buybacks. These findings survive a battery of tests.

The authors use logistic regression to predict the probability of a firm’s buyback decision based on a given set of exogenous explanatory variables.

The paper supports the hypothesis that buyback decisions are guided by the motive to prop support stock prices in the presence of outstanding restricted stock options/warrants granted to firms' executives.

The paper focuses on the buyback decision of U.S. hospitality firms. The results, therefore, might not be generalizable to firms in other industries or countries.

U.S. share repurchase corporate policy and government regulation needs to be revisited given the economic imperative for firms to invest in activities to restore employment and put them in a position for economic recovery.

Public criticism of the size, structure and form (i.e. loan vs grant) of COVID-19 bailouts warrants an examination of whether the factors that drive hospitality and tourism firms to repurchase shares support economic recovery.

Consistent with agency theory, the authors find a significant positive association between outstanding restricted stocks and a firm’s decision to support the stock prices by buying back shares.

Employees play a vital role in the success of a corporation. While boards of directors are created to protect shareholders’ interests, it is unclear if these directors also ensure employee welfare. In this vein, our paper examines the relationship between board leadership structure and employee well-being.

The authors employ several analysis techniques, including univariate analysis, ordinary least squares (OLS) regressions, two-stage least squares (2SLS) regressions, propensity score matching methodology, the Heckman Selection model and difference-in-differences analysis. The sample comprises USA public firms for the period 1998–2018.

Our findings indicate that having an independent chairperson can significantly benefit the welfare of employees, especially for firms with overly powerful chief executive officers (CEOs) and during times of financial distress.

Independent leadership structure is one of the crucial board characteristics that have not been examined to explain employee welfare at firms. We find that an independent chairperson can mitigate the negative effect of overly powerful CEOs on employee benefits. Importantly, independent chairpersons are beneficial for employees in difficult times and when CEOs are busy with daily activities.

This chapter is focused on what we can learn from oppressive governance, in this case specifically relating to university governance in terms of vice chancellors and presidents, to the deputy vice chancellor and deputy president and down the ever-growing university hierarchy to deans and heads of schools and their deputies, from a Freirean perspective. Freire wrote at length about how leaders ‘controlled’ education and why they did so, but he also wrote at length about how governments control populations – himself being both a political prisoner and a person in exile to escape persecution. This chapter subsequently examines Freire's ideas around what techniques people employ to control populations and applies them to a higher education setting because the similarities are numerous and the tactics familiar.

The goal was emancipatory, to characterise and dislodge oppressive management practices, to allow for the possibility of seeking an alternative organisational construction free of postcolonial/subaltern subordination and discrimination in a local, well-documented narrative.

The study was informed by a postcolonial/subaltern perspective and drew on the employment experience of an Aboriginal woman, Canada’s first Indigenous Dean of a law school. The researcher employed a combination of case study and critical discourse analysis with the aim of advancing rich analyses of the complex workings of power and privilege in sustaining Western, postcolonial relations.

The study made several conclusions: first, that the institution, a medium-sized Canadian university, carefully controlled the Indigenous subaltern to remake her to be palatable to Western sensibilities. Second, the effect of this control was to assimilate her, to subordinate her Indigeneity and to civilise in a manner analogous to the purpose of Indian residential schools. Third, that rather than management’s action being rational and neutral, focused on goal attainment, efficiency and effectiveness, it was an implicit moral judgement based on her race and an opportunity to exploit her value as a means for the university’s growth and status.

Through a postcolonial/subaltern perspective, this study demonstrated how management practices reproduced barriers to the participation of an Indigenous woman and the First Nations community that an organisation was intended to serve. The study demonstrated how a Western perspective – that of a university’s administration, faculty and staff – was privileged, or taken for granted, and the Indigenous perspective subordinated, as the university remained committed to the dispossession of Indigenous knowledge and values.

South Africa had formally introduced a policy of inflation targeting (IT) in February 2000. By December 2001, the governor of the South African Reserve Bank, after reading the latest statistics, was concerned with the disappointing economic data. Economic activity had slowed drastically, to the point that the country appeared to be heading for a recession. The gloomy statistics forced the governor to consider whether the country had pursued the right policy. Persistently high unemployment, one legacy of the apartheid era, meant that South Africa did not have the luxury of waiting for new policies to bear fruit. With the inflation forecast to exceed the mandated target, the governor would have to tighten monetary policy, which would further restrict investment. Was it is time for South Africa to change course?