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Labour Unemployment Insurance and Pension Asset Allocations
British Journal of Management, Pages: 1 - 16
Swansea University Author:
Yina Liang
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© 2024 The Author(s). This is an open access article under the terms of the Creative Commons Attribution License (CC BY 4.0).
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DOI (Published version): 10.1111/1467-8551.12881
Abstract
This paper examines the effect of unemployment risk on pension investment decisions of defined benefit pension plans. In particular, we examine whether unemployment insurance benefits affect pension investment risk. Using fixed‐effects and difference‐in‐difference analyses, we find evidence that fir...
Published in: | British Journal of Management |
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ISSN: | 1045-3172 1467-8551 |
Published: |
Wiley
2024
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URI: | https://cronfa.swan.ac.uk/Record/cronfa68377 |
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2025-02-04T12:44:53.2664830 v2 68377 2024-11-28 Labour Unemployment Insurance and Pension Asset Allocations 58a1d9e1dac57dc95fc1d126f290c0a4 0009-0003-7341-2233 Yina Liang Yina Liang true false 2024-11-28 CBAE This paper examines the effect of unemployment risk on pension investment decisions of defined benefit pension plans. In particular, we examine whether unemployment insurance benefits affect pension investment risk. Using fixed‐effects and difference‐in‐difference analyses, we find evidence that firms take higher pension investment risk by investing more heavily in equities after unemployment insurance benefit increases. These results are consistent with the notion that firms undertake more risk when the costs of unemployment decrease. The findings are robust to a number of sensitivity tests, including a falsification test to examine the timing of the relationship between the riskiness of the pension portfolio and unemployment insurance benefits, a 3‐year window, alternative matching methods and removing firms that operate in geographically dispersed industries. Additional analyses suggests that the findings are more pronounced for firms with skilled labour and high labour intensity, while they are less pronounced when the risk of layoffs is high, in less competitive industries and highly unionized firms. Journal Article British Journal of Management 0 1 16 Wiley 1045-3172 1467-8551 22 11 2024 2024-11-22 10.1111/1467-8551.12881 COLLEGE NANME Management School COLLEGE CODE CBAE Swansea University Another institution paid the OA fee 2025-02-04T12:44:53.2664830 2024-11-28T15:09:37.8507312 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Yina Liang 0009-0003-7341-2233 1 Paraskevi Vicky Kiosse 2 Monika Tarsalewska 0000-0003-4278-5697 3 68377__32998__2d4d84201aad43d6b34f6decbceedf7e.pdf 1467-8551.12881.pdf 2024-11-28T15:09:37.8289886 Output 362672 application/pdf Version of Record true © 2024 The Author(s). This is an open access article under the terms of the Creative Commons Attribution License (CC BY 4.0). true eng http://creativecommons.org/licenses/by/4.0/ |
title |
Labour Unemployment Insurance and Pension Asset Allocations |
spellingShingle |
Labour Unemployment Insurance and Pension Asset Allocations Yina Liang |
title_short |
Labour Unemployment Insurance and Pension Asset Allocations |
title_full |
Labour Unemployment Insurance and Pension Asset Allocations |
title_fullStr |
Labour Unemployment Insurance and Pension Asset Allocations |
title_full_unstemmed |
Labour Unemployment Insurance and Pension Asset Allocations |
title_sort |
Labour Unemployment Insurance and Pension Asset Allocations |
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58a1d9e1dac57dc95fc1d126f290c0a4 |
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58a1d9e1dac57dc95fc1d126f290c0a4_***_Yina Liang |
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Yina Liang |
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Yina Liang Paraskevi Vicky Kiosse Monika Tarsalewska |
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British Journal of Management |
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description |
This paper examines the effect of unemployment risk on pension investment decisions of defined benefit pension plans. In particular, we examine whether unemployment insurance benefits affect pension investment risk. Using fixed‐effects and difference‐in‐difference analyses, we find evidence that firms take higher pension investment risk by investing more heavily in equities after unemployment insurance benefit increases. These results are consistent with the notion that firms undertake more risk when the costs of unemployment decrease. The findings are robust to a number of sensitivity tests, including a falsification test to examine the timing of the relationship between the riskiness of the pension portfolio and unemployment insurance benefits, a 3‐year window, alternative matching methods and removing firms that operate in geographically dispersed industries. Additional analyses suggests that the findings are more pronounced for firms with skilled labour and high labour intensity, while they are less pronounced when the risk of layoffs is high, in less competitive industries and highly unionized firms. |
published_date |
2024-11-22T10:20:12Z |
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11.053478 |