How Do Private Equity Buyouts Affect Employee Pension Plans?

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dc.contributor.advisorWu, Youchang
dc.contributor.authorZhong, Wensong
dc.date.accessioned2024-08-07T21:58:48Z
dc.date.available2024-08-07T21:58:48Z
dc.date.issued2024-08-07
dc.description.abstractUsing data from the Form 5500 filings, I analyze the impact of private equity (PE) buyouts on the defined benefit (DB) plans of target firms. I find that following a buyout, DB plans are more likely to be frozen or terminated, and defined contribution (DC) plans are not likely to provide sufficient substitutes. Regarding the actuarial assumption and the pension characteristics, I find an increase in the pension liability discount rate and decreases in the projected benefit obligations (PBO), pension assets (PA), and contributions, but I do not find significant effects on funding ratio. Additionally, I find that investment strategies for these plans become riskier, with a higher allocation to equities and lower allocations to cash, government securities, insurance accounts, and mutual funds. However, there is no significant effect on realized returns. Overall, these results suggest that private equity buyouts may negatively affect the retirement welfare of DB plan participants of target firms.en_US
dc.identifier.urihttps://hdl.handle.net/1794/29780
dc.language.isoen_US
dc.publisherUniversity of Oregon
dc.rightsAll Rights Reserved.
dc.subjectdefined benefit planen_US
dc.subjectemployee benefiten_US
dc.subjectPrivate equityen_US
dc.titleHow Do Private Equity Buyouts Affect Employee Pension Plans?
dc.typeElectronic Thesis or Dissertation
thesis.degree.disciplineDepartment of Finance
thesis.degree.grantorUniversity of Oregon
thesis.degree.leveldoctoral
thesis.degree.namePh.D.

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