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Book/Printed Material Earnings manipulation and managerial investment decisions Evidence from sponsored pension plans

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Title

  • Earnings manipulation and managerial investment decisions Evidence from sponsored pension plans

Summary

  • "Managers appear to manipulate firm earnings when they characterize pension assets to capital markets and alter investment decisions to justify, and capitalize on, these manipulations. We construct a measure of the sensitivity of reported earnings to the assumed long-term rate of return on pension assets. Managers are more aggressive with assumed long-term rates of return when their assumptions have a greater impact on reported earnings. Managers also increase assumed rates of return as they prepare to acquire other firms and as they exercise stock options, further confirming the opportunistic nature of these increases. Decisions about assumed rates of return, in turn, influence asset allocation within pension plans. Instrumental variables results suggest that a 25 basis point increase in the assumed rate of return is associated with a 5% increase in equity allocation. Taken together, these results suggest that earnings manipulation arising from managerial motivations influences significant managerial investment decisions"--National Bureau of Economic Research web site.

Names

  • Bergstresser, Daniel
  • Desai, Mihir A. (Mihir Arvind), 1968-
  • National Bureau of Economic Research

Created / Published

  • Cambridge, MA : National Bureau of Economic Research, c2004.

Headings

  • -  Pensions
  • -  Portfolio management
  • -  Rate of return

Notes

  • -  Title from PDF file as viewed on 1/24/2005.
  • -  Includes bibliographical references.
  • -  Also available in print.
  • -  Mode of access: World Wide Web.
  • -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

  • HB1

Digital Id

Library of Congress Control Number

  • 2005616262

Access Advisory

  • Unrestricted online access

Online Format

  • image
  • pdf

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Cite This Item

Citations are generated automatically from bibliographic data as a convenience, and may not be complete or accurate.

Chicago citation style:

Bergstresser, Daniel, Mihir A Desai, and National Bureau Of Economic Research. Earnings manipulation and managerial investment decisions Evidence from sponsored pension plans. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. https://aj.sunback.homes/item/2005616262/.

APA citation style:

Bergstresser, D., Desai, M. A. & National Bureau Of Economic Research. (2004) Earnings manipulation and managerial investment decisions Evidence from sponsored pension plans. Cambridge, MA: National Bureau of Economic Research. [Pdf] Retrieved from the Library of Congress, https://aj.sunback.homes/item/2005616262/.

MLA citation style:

Bergstresser, Daniel, Mihir A Desai, and National Bureau Of Economic Research. Earnings manipulation and managerial investment decisions Evidence from sponsored pension plans. Cambridge, MA: National Bureau of Economic Research, 2004. Pdf. Retrieved from the Library of Congress, <aj.sunback.homes/item/2005616262/>.