The impact of pension governance practices on the public defined benefit pension performance

Xu, Guoquan; Liu, Fang‐Chun; Hsu, Hsiao-Tang; Lin, Jerry W.

doi:10.1108/bij-08-2018-0265

Cited by 4 publications

(11 citation statements)

References 89 publications

(132 reference statements)

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“…In addition, the type of board members also matters, as prior research has documented the positive impacts of appointed board trustees on DBP performance (Andonov et al. , 2018; Brooks, 2019; Xu et al. , 2020).…”

Section: Methodsmentioning

confidence: 99%

“…Most prior pension studies focus on the examination of pension practices employed in the private sector (Xu et al. , 2020).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…pension funding practices and accounting discretion) has been explored in the public pension literature (Naughton et al. , 2015; Xu et al. , 2020; Anantharaman and Chuk, 2022).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…, 2020; Anantharaman and Chuk, 2022). Xu et al. (2020) address the association between public pension governance characteristics and pension performance.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Budget amounts are subject to the approval of public officials. Public officials' political incentives are expected to have an influential role in the decisions of budget planning and resources allocated to the public pension funds (Xu et al. , 2020).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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The association between public pension fund characteristics and pension accounting choices

Liu²,

Hsu³

et al. 2022

ARA

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PurposeThe choice of accounting methods is critical in measuring the performance and sustainability of a public defined benefit pension (DBP) plan, and such measurement has an impact on the effectiveness of the entire pension system. Prior literature rarely discusses the choice and rationale of the accounting assumptions for public DBP plans. This study fills the gap by investigating whether crucial plan characteristics, including operational performance, financial health, sponsor fiscal stress, and audit quality, are associated with the accounting assumptions of public DBP plans.Design/methodology/approachThe sample includes 1,170 plan-years from the intersection of the Center for Retirement Research and public DBPs' annual financial reports for the years 2001–2013. This study develops regression models to examine the relationship between the characteristics of public DBP practices and DBP accounting choices.FindingsThe empirical results show that the public DBPs that have better investment performance, higher funding status, less fiscal stress, and that are audited by Big 4 accounting firms are more likely to adopt conservative accounting choices.Originality/valueThe study documents the impact of crucial pension plan characteristics on public DBP managers' accounting choices, which were not extensively discussed in pension literature. The findings help us understand the rationale for employing different accounting treatments in the context of public pension fund practices. In addition, the study sheds light on policy implications for the future reform of public pension regulations.

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Section: Methodsmentioning

confidence: 99%

“…Most prior pension studies focus on the examination of pension practices employed in the private sector (Xu et al. , 2020).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…pension funding practices and accounting discretion) has been explored in the public pension literature (Naughton et al. , 2015; Xu et al. , 2020; Anantharaman and Chuk, 2022).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…, 2020; Anantharaman and Chuk, 2022). Xu et al. (2020) address the association between public pension governance characteristics and pension performance.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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The association between public pension fund characteristics and pension accounting choices

Liu²,

Hsu³

et al. 2022

ARA

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Assessing the Efficiency of Defined Benefit Private and Public Pension Plans using Data Envelopment Analysis Adjusted Estimator

Mfoutou

Danquah

2022

Business Perspectives and Research

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This study uses data envelopment analysis (DEA) adjusted estimator to assess the efficiency of defined benefit private and public pension plans in the Republic of Congo. We also incorporate the industry fund in the assessment. The authors apply constant return to scale (CRS) adjusted estimator input and output orientation. In input orientation, we intellectualize efficiency as the ability of defined benefit pension funds to reduce costs, whereas assets remain constant. In output orientation, we conceive efficiency as raising the return on investment in existing contribution, administrative, and investment cost capacities. CRS-adjusted scores depict that the defined benefit private pension fund is on the efficient frontier regarding its input and output. The defined benefit public and industry pension funds are off the efficient frontier. Hence the private sector ranked first, is more efficient than the public sector, ranked third. The industry sector is less efficient compared to the private sector but more efficient than the public sector. As far as efficiency studies are concerned, this study is the first in sub-Saharan Africa to use the DEA-adjusted estimator to assess the efficiency of defined benefit pension funds.

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Improving pension funds’ performance using data envelopment analysis considering government regulations

Badrizadeh,

Paradi,

Alirezaee

2023

CGSR

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Pension fund managers operate in an investment environment with strict government regulations and a unique taxation system. Also, low birth rates, together with a higher average age of the population and an increase in general life expectancy provide further motivation for investigating pension funds’ performance. Adding to the study by Badrizadeh and Paradi (2020) in which a new model was presented for evaluating pension funds’ performance considering the effects of invisible variables, this study introduces a new methodology based on data envelopment analysis (DEA) which evaluates the pension funds’ performance by considering the importance of different variables based on an expert’s judgements as well as borrowing useful information from the mutual funds’ dataset. Similar variables between pension funds and mutual funds are included. The correlation between mutual fund variables is extracted and tested statistically. Then, these regressions are used to define trade-offs in the pension funds’ model. When these trade-offs and expert’s opinions are added, the results show that the discriminatory power of the DEA increases. Furthermore, three different target levels are defined for inefficient pension plans. This research is applied to Canadian pension funds and mutual funds but could be utilized in similar problems in industry and government

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The impact of pension governance practices on the public defined benefit pension performance

Cited by 4 publications

References 89 publications

The association between public pension fund characteristics and pension accounting choices

The association between public pension fund characteristics and pension accounting choices

Assessing the Efficiency of Defined Benefit Private and Public Pension Plans using Data Envelopment Analysis Adjusted Estimator

Improving pension funds’ performance using data envelopment analysis considering government regulations

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