Determinants of Actuarial Valuation Method Changes for Pension Funding and Reporting: Evidence from the UK
基于90家英国公司的配对样本，分析企业为何转向市场导向的精算养老金估值方法，发现低贴现率、低资金比率和大型养老金计划的公司更易变更方法，结果与英国传统视角一致，但与美国研究结论不同。
This study examines various factors that potentially explain cross‐sectional variations in UK corporate managerial discretion to switch towards a market‐based actuarial pension valuation method for pension funding and reporting purposes. Evidence is based on accounting, actuarial and share market data for an industry‐matched pair sample of 90 UK firms. Consistent with our hypotheses we find that companies have a greater propensity to switch actuarial methods if they use lower discount rates, lower flow funding ratios and sponsor larger pension plans in the pre‐switch valuation year. These findings are consistent with the traditional perspective, which implies that UK corporate switching decisions are explained by characteristics of their defined benefit pension funds. The results run contrary to the findings of earlier US based studies that find that such choices can be explained from an alternative corporate financial perspective.