Managerial overconfidence and pension plan management

• Main Authors: Yu, Tzu-Yi, 游子誼
• Other Authors: Lin, Jui-Chia
• Format: Others
• Language: en_US
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/27pk52

碩士 === 國立交通大學 === 財務金融研究所 === 106 === In this paper, we examine the effect of managerial overconfidence on defined benefit pen-sion plan management. Our findings show that overconfident executives show their expectation and belief on actuarial pension assumptions by using aggressive assumption choices. Mean-while, our findings show that there is no difference between overconfident managers and non-overconfident managers on risk-tanking behavior. In other words, we argue the belief of managerial overconfidence in actuarial pension assumptions could be separated from the corre-sponding risk-taking behavior in pension management. We also find that pension benefit own-ership of executives does not mitigate the effect of overconfidence on pension assumptions choices.