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A Comment on Excess Asset Reversions and Shareholder Wealth
Author(s) -
MOORE NORMAN H.,
PRUITT STEPHEN W.
Publication year - 1990
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1990.tb03739.x
Subject(s) - pension , restructuring , shareholder , asset (computer security) , business , pension plan , monetary economics , event (particle physics) , event study , asset allocation , economics , finance , portfolio , corporate governance , paleontology , context (archaeology) , physics , computer security , quantum mechanics , computer science , biology
This study re‐examines the earlier finding of Alderson and Chen (1986a) that financial markets do not consider excess pension assets in determining share prices and that significant increases in shareholder wealth occur when an overfunded pension plan is terminated. The results document that specific event‐time contamination (corporate restructuring announcements) provides the driving force for all the earlier findings.