Determinants of defined-contribution corporate pension adoptions in Japan

Yutaka Horiba () and Kazuo Yoshida
Additional contact information
Yutaka Horiba: Tulane University
Kazuo Yoshida: Nagoya City University

Journal of Economics and Finance, 2021, vol. 45, issue 3, No 6, 486-503

Abstract: Abstract Traditional Japanese corporate pension plans with defined benefits (DB) have been saddled with serious underfunding difficulties since the major stock market crash of the early 1990s. An alternative defined-contribution (DC) plan circumvents the underfunding problem by linking the benefit payout to the market valuation of pension obligations. This paper examines a comprehensive set of Japanese corporations listed on the Tokyo Stock Exchange as to the factors that led to their decision to adopt a DC plan during the period 2001–2015. Our findings point to the relevance of several unique aspects and features of Japanese regulations as well as business practices, in stark contrast to some of the findings reported in the literature focusing on U.S. corporations.

Keywords: Japanese corporate pension; Defined contribution; Empirical study (search for similar items in EconPapers)
JEL-codes: D22 G14 G20 G30 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12197-020-09536-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jecfin:v:45:y:2021:i:3:d:10.1007_s12197-020-09536-2

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/12197/PS2

DOI: 10.1007/s12197-020-09536-2

Access Statistics for this article

Journal of Economics and Finance is currently edited by James Payne

More articles in Journal of Economics and Finance from Springer, Academy of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().