Unfunded pension liabilities and sponsoring firm credit risk: an international analysis of corporate bond spreads

This paper tests empirically whether pension information derived by corporate pension accounting disclosures is priced in corporate bond spreads. The model represents a hybrid of more traditional accounting ratio-based models of credit risk and structural models of bond spreads initiated by Merton (1974). The model is fitted to 5 years of data from 2002 to 2006 featuring companies from the US and Europe. The paper finds that while unfunded pension liabilities are priced in the overall sample, they are not priced as aggressively as traditional leverage. Furthermore, an extended model shows that the pension–credit risk relation is most evident in the US and Germany, where unfunded pension liabilities are priced more aggressively than traditional forms of leverage. No pension–credit risk relation is found in the other countries sampled, notably the UK, Netherlands and France.

Unfunded Pension Liabilities and the Corporate CDS Market

This article examines the impact of pension deficits on default risk as measured by the premia on corporate credit default swaps (CDS). We find highly significant evidence that unfunded pension liabilities raise one- and five-year CDS premia. However, this relation is not homogeneous across countries, with the U.S. CDS market leading its European counterparts in the pricing of defined-benefit pension risk.

Efficacy and ethics:An investigation into the role of ethics, legitimacy and power in planning

The main thrust of the article is to consider the role of ethics, legitimacy, power and evidence-based policy in planning practice. The laboratory for the investigation is provided by developments in policymaking and implementation in the jurisdiction of Northern Ireland. In this context, each of the key themes is developed to establish a conceptual framework and the emerging issues are subsequently explored in an empirical investigation which deals with policy formulation and implementation, enabling lessons to be learnt about the motivations, tactics and strategies of the various participants in the process.

Evidence and Ethics in Infrastructure Planning

Motivated by criticism of the new infrastructure planning process, the paper considers the role of the Infrastructure Planning Commission and National Policy Statements. Drawing upon lessons learnt from other jurisdictions where similar legislation, structures and procedures have been operational for some time, emerging issues regarding policy, practice and the role of participants are considered through an empirical investigation, in the context of professional ethics, legitimacy and evidence-based decision making. Remedies are suggested to potential operational problems and issues of structural concern are identified which have ramifications for wider planning practice.