Employee Representation and the Risk of Corporate Pension Plans
43 Pages Posted: 2 Mar 2020
Date Written: January 01, 2020
We analyze the effect of direct labour representation in supervisory boards on the risk of corporate pension plans.We exploit employee representation requirements mandated by German labour law and find that firms with parity employee representation reduce pension plan risk both in terms of funding as well as in terms of investment risk.
Keywords: Employee representation, Risk shifting, defined benefit pensions
JEL Classification: G20, G30
Suggested Citation: Suggested Citation