Credit Ratings, Defined Benefit Pension Plans and SFAS 158
Thompson, Dorothy Abstract:
This paper empirically investigates the effect that the Statement of Financial Accounting Standard (SFAS) 158 has on credit ratings for firms with defined benefit pension plans. The results show that, relative to other firms, firms that sponsor defined benefit pension plans have higher corporate credit ratings and that those scores decrease after the implementation of SFAS158. In addition, the more funded a defined benefit pension p...